A company which another company is a member and control the board of directors or hold more than half of its equity is termed_______
Question 1 Report
A company which another company is a member and control the board of directors or hold more than half of its equity is termed_______
Answer Details
A subsidiary is a company that is controlled by another company, often referred to as the parent company. The parent company holds more than half of the subsidiary's equity or controls the board of directors, giving it significant influence over the subsidiary's operations and decisions. The subsidiary operates as an independent company, but it is ultimately controlled by the parent company. This relationship allows the parent company to expand its operations and diversify its business interests, while still maintaining control over the subsidiary.
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