A company that is owned by a larger company,but operates independently,is called a ________.
A) wholly owned affiliate
B) holding company
C) sub-company
D) company property

Question

Quizplus · Accepted Answer

A company that is owned by a larger company but operates independently is called a wholly owned affiliate. This means that the larger company owns 100% of the affiliate's shares, but the affiliate has its own management and operates as a separate entity.

Answer: B 
 A holding company is a company that owns the outstanding stock of other companies, making them a parent or controlling company. However, a holding company may not necessarily allow its subsidiaries to operate independently.

C) sub-company is not a commonly used term in business and D) company property is not an accurate description of a company's relationship with another entity.

A Company That Is Owned by a Larger Company,but Operates