A Component of Equity That Arises When a Parent Company

question 47

Multiple Choice

A component of equity that arises when a parent company owns a majority of the common shares of a subsidiary company is known as

• A) majority interest.
• B) noncontrolling interest.
• C) earned capital.
• D) unearned capital.

---

Definitions:

Public Use

The concept that property or services are available for use by the general public, often justifying government action such as eminent domain.

Restrictive Covenant

refers to clauses in contracts that limit one party from engaging in certain activities that could compete with or harm the other party, often found in employment and real estate agreements.

Appurtenant

A right or privilege attached to land that benefits the landowner, such as a right of way.

Original Parties

The initial entities or individuals who enter into a contract or agreement, distinct from any third parties or assignees.