If the Percentage of Interest of the Parent Is Not

question 19

Multiple Choice

If the percentage of interest of the parent is not 100%,who owns part of the assets and liabilities of the subsidiary?

• A) Negligible shareholders.
• B) Insignificant shareholders.
• C) Non-controlling (minority)shareholders.
• D) Third shareholders.

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Definitions:

Legitimate Power

A form of authority derived from a position or role that gives the holder the right to make decisions, command, and influence others.

Formal Hierarchical Authority

The clearly defined structure in an organization that dictates levels of responsibility, power, and control.

Association Power

The influence an individual or group can exert due to the connections or relationships they have.

Social Relation

The interaction and interconnectedness between individuals or entities within a society, emphasizing relationships and social structures.