Question 94
Business CombinationsWhere a company has acquired control of another company by the purchase of at least 51 percent of its voting shares, it is referred to as a
- A.multinational company
- B.business trust
- C.trade association
- D.holding company
- E.cartel
Show the answer and explanation
Answer: D (holding company)
Explanation
A holding company controls another (subsidiary) company by owning more than half of its voting shares.