Which of the Following Best Illustrates a Parent-Subsidiary Relationship

question 24

Multiple Choice

Which of the following best illustrates a parent-subsidiary relationship?

• A)Company A owns 55% of the outstanding voting shares of Company B. They have the right to appoint 8/10 members of the board of directors of Company B, however they choose not to get involved in the day-to-day operations of Company B.
• B)Company A owns 75% of the outstanding shares of Company B and they have the right to appoint 1/10 members of the board of directors of Company B.
• C)Company A and Company B have set up a separate entity that they each jointly control.
• D)Company A owns 45% of the outstanding shares of Company B and provides accounting function assistance as their controller quit during the year.

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Definitions:

Core Culture

The fundamental beliefs, values, and practices that form the basis of an organization's identity and ways of operating.

Step-by-Step Socialization

A gradual process of integrating individuals into a new social setting or culture, typically involving sequential stages or phases.

Company's Culture

The shared values, beliefs, behaviors, and practices that characterize an organization and influence its members' actions and interactions.

Founder

An individual who establishes an organization, company, or movement.