If a Company's Investment in Another Company Is Between 20

question 21

Multiple Choice

If a company's investment in another company is between 20% and 50%, the company invested in is typically known as a/an:

• A)subsidiary company.
• B)associate company.
• C)parent company.
• D)holding company.

---

Definitions:

Perfectly Inelastic

A demand situation where the quantity demanded does not change in response to price changes.

Elastic

A characteristic of a demand or supply curve which shows a high responsiveness to changes in price.

Inelastic

Refers to a condition in which the demand or supply of a product or service remains largely unaffected by variations in its price.

Pure Monopolist

A market scenario where a single company or entity exclusively controls the entire supply of a particular product or service, without any close substitutes or competition.