Chapter 15, Problem 13QS

To determine

Concept Introduction:

The various terms are used here.

The terms that are used here are $–$

a. Subsidiary $–$

A subsidiary is the company whose shares are bought by another company. But the purchasing company must buy shares more than 50% of ownership.

b. Parent $–$

A parent company is the company shares of the other company more than 50% of ownership. The company whose shares are bought by another company is treated as subsidiary.

c. Controlling $–$

When a company purchases an investment ranging from 20 % to 50 % of ownership and that gives a significant control to the investor over the investee.

When a company has significant control over the other company in case, it is treated as controlling company.

The mentioned terms have been discussed.

To complete:

The descriptions by filling in the blanks using the terms given.