Asked by
Hamadi Ghariani
on Oct 16, 2024Verified
The investee company in a long term investment with controlling interest is called the:
A) Owner.
B) Subsidiary.
C) Parent.
D) Creditor.
E) Senior entity.
Investee Company
A company in which an investor holds a minority stake, without controlling interest or influence.
Controlling Interest
An ownership interest in a company that gives the holder a majority of voting rights, often allowing for control over the company’s policies and decisions.
Subsidiary
A company that is completely or partially owned and controlled by another company, known as the parent company.
- Understand the principles of equity method accounting.
Verified Answer
NF
Learning Objectives
- Understand the principles of equity method accounting.