Answered: There has been no precedent of parent…

There has been no precedent of parent corporation being held liable for the liability of its subsidiary corporation True False

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

There has been no precedent of parent corporation being held liable for the liability of its subsidiary corporation

True

False

Expert Solution

Step 1

A parent subsidiary relationship exists between two entities if one entity is in position to control the operations of other entity.

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