When one corporation acquires control of another entity, the investor corporation is referred to as the...

When one corporation acquires control of another entity, the investor corporation is referred to as the parent and the investee corporation as the:

child.

joint venture.

subsidiary.

associate.

Expert Solution

Joint venture :- which type of organisation is formed by two or more organisations by investing financial resources into one organisation for a particular purpose. In this there is no controlling interest of one organisation by other organisation

Subsidiary :- company whose shareholding more than 51% held by a other company then such company is called a subsidiary company.

Associate :- company who share holding of 20% is held by another company will be treated as associate company to such company.

In the given case one company acquired the controlling authority of another company then the company which acquired the controlling authority is termed as parent company and the company whose control is acquired by another company is termed as subsidiary.

In the given case the relationship of two companies is parent and subsidiary.

These are all the information required to solve the above given question.

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ekkarill92 answered 1 year ago

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