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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