If one company owns more than 50% of the common shares of another company
A)the cost method should be used to account for the investment.
B)a partnership exists.
C)a parent-subsidiary relationship exists.
D)the company whose shares are owned must be liquidated.

Question

Quizplus · Accepted Answer

When one company owns more than 50% of the common shares of another company, it typically indicates a parent-subsidiary relationship. This ownership level gives the parent company control over the subsidiary.

If One Company Owns More Than 50% of the Common