When one corporation acquires control of another entity, the investor corporation is referred to as the parent and the investee corporation as the
A) subsidiary.
B) joint venture.
C) associate.
D) child.

Question

Quizplus · Accepted Answer

When one corporation acquires control of another entity, the investor corporation is referred to as the parent and the investee corporation is referred to as the subsidiary. The other options (B, C, and D) are not correct terminology for this situation.

When One Corporation Acquires Control of Another Entity, the Investor