When One Company Purchases Less Than 50% of Equity Securities

question 60

Multiple Choice

When one company purchases less than 50% of equity securities in a second company,which of the following statements is true?

• A)The purchaser is referred to as the parent.
• B)The purchaser is referred to as the subsidiary.
• C)The company whose securities are purchased is the subsidiary.
• D)The company whose securities are purchased is the investee.

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Definitions:

Stem Cell

Stem Cells are undifferentiated cells with the potential to develop into different cell types, used in medical research for their regenerative properties.

Differentiate

The process by which cells or tissues undergo a change from a generalized to a more specialized form or function.

Adult Cell Types

Categories of cells that have differentiated to perform specific functions in the body of an adult organism.

Hemopoietic Tissue

Blood-forming tissue.