Which of the following statements is incorrect?
A)A parent company holds a majority interest in a subsidiary company.
B)A takeover is when a company buys a controlling interest in another company.
C)A non-controlling interest is also known as a minority interest.
D)An associate company is another name for a subsidiary company.

Question

Quizplus · Accepted Answer

An associate company is a company in which the investing company has significant influence but does not have a controlling interest, whereas a subsidiary company is a company in which the parent company holds a majority interest and has control over its operations. Therefore, statement D is incorrect.

Which of the Following Statements Is Incorrect