____________ Is Considered to Be Self-Sustaining If It Is Financially

question 195

Multiple Choice

____________ is considered to be self-sustaining if it is financially and operationally independent of the reporting enterprise.

• A) Retrocession
• B) Reinsurance
• C) Portfolio Investments
• D) Foreign operation

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Definitions:

Subsidiary Company

A company that is completely or partly owned and partly or wholly controlled by another company, known as the parent company.

Parent Company

A corporation that owns a majority of the shares of another company, thus controlling management and operations.

Controlled Company

A company in which a majority of its stock is owned or its operations are controlled by another entity.

Investee Company

A company in which another company (the investor) holds a significant stake but does not have controlling interest.