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:

Economic Profit

The variance between what a business earns in total and what it spends, counting both actual expenses and notional costs.

Efficient Output

The level of production where the maximum possible output is achieved with the given resources and technology, minimizing waste and cost.

Firm

A business organization, such as a corporation, partnership, or sole proprietorship, that sells goods or services in exchange for money.

Firm's ATC

The total average cost for a firm, including both fixed and variable costs, per unit of output.