Knowee
Questions
Features
Study Tools

The investee company in a long-term investment with controlling interest is called the:Multiple ChoiceOwner.Subsidiary.Parent.Creditor.Senior entity.

Question

The investee company in a long-term investment with controlling interest is called the:

  • Owner.
  • Subsidiary.
  • Parent.
  • Creditor.
  • Senior entity.
🧐 Not the exact question you are looking for?Go ask a question

Solution

Step 1: Break Down the Problem

To solve the question, we need to identify the correct term used to describe a company in which another company has a controlling interest in a long-term investment.

Step 2: Relevant Concepts

  • Owner: A general term that can refer to anyone who owns a part of a company.
  • Subsidiary: A company that is controlled by another company (the parent company).
  • Parent: The company that holds controlling interest in another company (the subsidiary).
  • Creditor: A party that lends money or extends credit.
  • Senior entity: A term that often refers to a higher-ranking organization but doesn't specifically apply to ownership/control.

Step 3: Analysis and Detail

The key terms here are "long-term investment" and "controlling interest." In corporate structures:

  • A subsidiary is a company that is controlled by another company.
  • A parent company is the one that owns enough voting stock or shares in another company to control its decisions.

Step 4: Verify and Summarize

The question asks for the term that means the company that has a controlling interest. Since the term "parent" is specifically used in corporate contexts to denote the owner of a subsidiary, it best fits the definition being asked.

Final Answer

The correct answer is Parent.

This problem has been solved

Similar Questions

An investor who buys stock in a company is also known asMultiple ChoiceNone of the answers are correct.a manager.a lender.an owner.a dividend holder.

A form of direct foreign investment in which an investing entrepreneur holds a minority ownership position in a foreign venture is known as a(n) .

What do you understand by the term investment? Name a few companies which make foreign investments

In which type of financing does an investor receive shares for the money invested.Group of answer choicesDebt FundingLoansBusiness IncubatorsEquity Funding

A person who owes money to a business is known as a:Question 2Answera.Partnerb.Debtorc.Creditord.Investor

1/2

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.