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A company is considered a subsidiary of another company if:
  • a)
    It has at least 20% significant influence over the company's decisions.
  • b)
    It controls more than 50% of the voting power in the company.
  • c)
    It is a private company with fewer than 200 members.
  • d)
    Its shares are listed on a recognized stock exchange.
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
A company is considered a subsidiary of another company if:a)It has at...
- A subsidiary is defined by control, which typically means:
- Control over more than 50% of the voting power.
- This is because owning the majority of voting shares allows a company to influence decisions and policies.
- Option B is correct as it aligns with the standard definition of a subsidiary.
- Options A, C, and D do not provide the required level of control.
- A significant influence (20%) often relates to an associate, not a subsidiary.
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A company is considered a subsidiary of another company if:a)It has at least 20% significant influence over the companys decisions.b)It controls more than 50% of the voting power in the company.c)It is a private company with fewer than 200 members.d)Its shares are listed on a recognized stock exchange.Correct answer is option 'B'. Can you explain this answer?
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A company is considered a subsidiary of another company if:a)It has at least 20% significant influence over the companys decisions.b)It controls more than 50% of the voting power in the company.c)It is a private company with fewer than 200 members.d)Its shares are listed on a recognized stock exchange.Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A company is considered a subsidiary of another company if:a)It has at least 20% significant influence over the companys decisions.b)It controls more than 50% of the voting power in the company.c)It is a private company with fewer than 200 members.d)Its shares are listed on a recognized stock exchange.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company is considered a subsidiary of another company if:a)It has at least 20% significant influence over the companys decisions.b)It controls more than 50% of the voting power in the company.c)It is a private company with fewer than 200 members.d)Its shares are listed on a recognized stock exchange.Correct answer is option 'B'. Can you explain this answer?.
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