A Company That Owns More Than 50% of the Common

question 64

Multiple Choice

A company that owns more than 50% of the common stock of another company is known as the

• A) charge company.
• B) subsidiary company.
• C) parent company.
• D) management company.

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Definitions:

Issuing Stock

The process by which a company distributes shares to investors for the first time, typically to raise capital for expansion or other corporate activities.

Corporation's Resources

The assets, both tangible and intangible, that a corporation has available for use in the production of goods or the provision of services.

Cost Concept

An accounting principle that states that all goods and services purchased by a business should be recorded at their cost price.

Appraisal

The process of professionally estimating the value of a property, typically performed by a certified appraiser.