A Company That Owns More Than 50% of the Ordinary

question 162

Multiple Choice

A company that owns more than 50% of the ordinary shares of another company is known as the

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

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Definitions:

Minority Interest

An ownership stake in a company that is less than 50 percent, indicating that the investor does not have control over business operations.

Outstanding Stock

Shares of a company's stock that have been issued and are currently held by investors, including public shareholders and company insiders.

Parent

In financial terms, this refers to a parent company that owns enough voting stock in another company to control its operations and policies.

Subsidiary

A company that is completely or partly owned and partly or wholly controlled by another company, known as the parent company.