Why Can a Parent Corporation Cause Its Subsidiary to Transact

question 46

Multiple Choice

Why can a parent corporation cause its subsidiary to transact with it in a manner that benefits the parent but harms the subsidiary?

• A)The parent corporation has commingled its assets with the subsidiary.
• B)The parent owns a majority of the subsidiary's shares.
• C)The parent is liable for its obligations and the subsidiaries.
• D)The parent elects the directors of its subsidiary and therefore,can control the management of a subsidiary.

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Definitions:

Labial Separation

The parting or division of the labia, which are the outer and inner folds of the vulva.

Nipple Erection

The condition in which the nipples become erect as a reflexive response to cold temperatures or stimulation.

Pelvic Inflammatory Disease

An infection of the female reproductive organs, usually caused by sexually transmitted bacteria, leading to symptoms such as pelvic pain.

Douching

The practice of rinsing or cleaning out the vagina with water or other mixtures of fluids, which is often discouraged by healthcare professionals due to risks of infection.