Which of the following statements is incorrect?
A)a parent can never have control of a subsidiary with less than 50% ownership of the subsidiary
B)a parent may have control of a subsidiary with less than 50% ownership of the subsidiary
C)the non- controlling interest in a subsidiary is the group of shareholders who own shares that the parent company does not own
D)the portion of the equity of a subsidiary not owned by a parent is known as the non- controlling interest

Question

Quizplus · Accepted Answer

This statement is incorrect. A parent may have control of a subsidiary with less than 50% ownership of the subsidiary, depending on the level of influence it has over the subsidiary's management and decision-making processes.

Which of the Following Statements Is Incorrect