If a company's investment in another company is between 20% and 50%, the company invested in is typically known as a/an:
A)subsidiary company.
B)associate company.
C)parent company.
D)holding company.

Question

Quizplus · Accepted Answer

An associate company is a company in which another company holds between 20% and 50% of the shares. While the investing company has a significant influence on the associate company's decisions, it does not have control over the company's operations. Therefore, the associate company is not a subsidiary or division of the investing company.

If a Company's Investment in Another Company Is Between 20