A Subsidiary Is a Corporation Owned or Controlled by a Parent

question 98

Multiple Choice

A subsidiary is a corporation owned or controlled by a parent company through the ownership of

• A)more than 10% of the voting stock.
• B)more than 20% of the voting stock.
• C)more than 25% of the voting stock.
• D)more than 50% of the voting stock.
• E)100% of the voting stock.

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Definitions:

Marginal Cost

The cost of producing one more unit of a good or service, crucial for decision-making in business operations and pricing.

Cartel

An agreement among competing firms to control prices or production in a particular market, often with the goal of monopolizing it.

Marginal Cost

The increase in cost that arises from producing one additional unit of a good or service. It's a measure of the cost of producing one more unit of a good.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance expenses.