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, where the parent company has control over the subsidiary.

If One Company Owns More Than 50% of the Common