A Subsidiary Is Defined as an Entity That Is Controlled

question 37

Multiple Choice

A subsidiary is defined as an entity that is controlled by another company. Three criteria must be present in order for there to be control. The parent must have all of the following except:

• A)The ability to direct the financial and operating policies of another company.
• B)The ability to obtain returns from another company.
• C)The ability to use its power to affect the returns from another company.
• D)The ability to issue any class of securities in a public market on behalf of another company.

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Definitions:

Biological Maturation

The process of growth and development guided by an individual's genetic code.

Stage Theories

Psychological theories that propose development occurs in a series of distinct and sequential stages.

Explosive Tempers

Characterized by sudden and intense expressions of anger that are disproportionate to the situation.

Maintaining Jobs

The act of preserving or keeping one's employment status stable over time.