Which of the Following Statements Is Correct

question 12

Multiple Choice

Which of the following statements is correct?

• A)a parent entity can hold only direct ownership interests in a subsidiary
• B)a parent entity can hold only indirect ownership interests in a subsidiary
• C)a parent entity cannot control a subsidiary if its shareholding is less than 50%
• D)a parent entity can hold both direct and indirect ownership interests in a subsidiary

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Definitions:

Numerically Measurable

Characteristics or quantities that can be quantified or expressed using numbers.

Budget Line

A graphical representation of all possible combinations of two goods or services that a consumer can afford given their income and the prices of the goods, reflecting budgetary constraints.

Price

The amount of money required to purchase a good or service, determined by factors such as supply, demand, and production costs.

Trade

The exchange of goods and services between individuals or entities, either within the same country or internationally.