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:

Unconscious

Part of the mind that is not within thought's immediate awareness, influencing behaviors and thoughts without our knowing.

Sense of Self

An individual's perception of their personality traits, physical characteristics, abilities, values, goals, and roles that constitute their identity.

Unique

Being the only one of its kind; without an equal or equivalent; distinctly characteristic.

Psychosexual Development

A theory proposed by Freud that suggests individuals go through five stages of personality development tied to sexual maturation.