A Company That Has the Majority of Its Voting Shares

question 94

Multiple Choice

A company that has the majority of its voting shares owned by a parent company is called the

• A)controlled company.
• B)subsidiary company.
• C)investee company.
• D)sibling company.

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Definitions:

Millions

A numerical value or unit representing one million units of a currency or indicating a quantity of one million in number.

Cash Flow

The total accounting of funds moving in and out of a business, directly affecting its capability to remain solvent.

Stockholders

Individuals or entities that own shares in a corporation, giving them partial ownership.

New Debt

Funds a company borrows through the issuance of debt instruments, such as bonds or loans, as a way to finance operations or projects.