Minority interests arise when:
A) The parent entity does not control a subsidiary in the group.
B) The parent entity raises capital through preference shares that have the characteristics of debt to fund the subsidiary.
C) The subsidiary has owners of equity who are not owners through their ownership interest in the controlling parent entity.
D) The subsidiary has invested in other entities in which it does not have a controlling interest.
E) None of the given answers.

Question

Quizplus · Accepted Answer

Minority interests arise when a subsidiary has owners of equity who are not owners through their ownership interest in the controlling parent entity. This means that there are shareholders who are not affiliated with the parent company that holds a controlling interest in the subsidiary.

Minority Interests Arise When