When One Company Purchases Less Than 50% of Equity Securities

question 60

Multiple Choice

When one company purchases less than 50% of equity securities in a second company,which of the following statements is true?

• A)The purchaser is referred to as the parent.
• B)The purchaser is referred to as the subsidiary.
• C)The company whose securities are purchased is the subsidiary.
• D)The company whose securities are purchased is the investee.

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Definitions:

Basal Ganglia

A group of structures linked to the thalamus in the base of the brain and involved in coordination of movement.

Temporal Lobe

is a region of the brain located beneath the lateral fissure on both cerebral hemispheres, involved in processing auditory information and encoding memory.

Amygdala

A part of the brain located within the temporal lobe, involved in emotion processing, fear responses, and memory.

Basal Ganglia

A group of structures located deep within the cerebral hemispheres involved in controlling movement and coordination.