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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Humorous

Pertaining to being funny, comical, or amusing.

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Democrat

A member or supporter of the Democratic Party, one of the two major political parties in the United States, typically associated with liberal and progressive policies.