Which of the Following Terms Represents More Than 50% Interest

question 4

Multiple Choice

Which of the following terms represents more than 50% interest in a subsidiary company?

• A)Equity interest
• B)Minority interest
• C)Controlling interest
• D)Directing interest

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Definitions:

New Capital

Additional funds or assets put into a business by the owners or investors intended for the expansion or improvement of the enterprise.

Profits

The financial gain realized when the revenue from an economic activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Industry

A sector of the economy characterized by the production of goods or provision of services within a certain field.

Interest Rate

The price paid for the use of borrowed funds, or the return earned on deposited funds.