A company is referred to as a parent if it owns
A) 33% of the debt securities of a second company
B) 100% of the debt securities of a second company
C) 15% of the equity securities of a second company
D) None of these choices

Question

Quizplus · Accepted Answer

A company is referred to as a parent company primarily based on its ownership of a controlling interest in another company (usually through owning more than 50% of the subsidiary's equity securities), not through owning debt securities or a small percentage of equity.

A Company Is Referred to as a Parent If It