Which Statement Is Correct About Subsidiaries

question 13

Multiple Choice

Which statement is correct about subsidiaries?

• A)An arrangement where one party has the power to participate in the financial and operating policy decisions of another entity.
• B)An arrangement where one entity governs the financial and operating policies about another entity.
• C)A contractual arrangement whereby two or more parties share control over an economic activity and all strategic decisions requires unanimous consent by all parties.
• D)An arrangement that gives rise to a financial asset for one entity and a financial liability or equity instrument for another entity.

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Definitions:

Communication Medium

The channel or method through which information is conveyed between communicators, such as in-person, email, social media, or print.

Formal Reports

In-depth, structured reports prepared for a specific audience, usually following established norms or standards.

Three-Step Writing Process

A methodology involving planning, writing, and completing to efficiently create written communications.

Inspire

To fill someone with the urge or ability to do or feel something, especially something creative or positive.