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WAEC Commerce 2001 Question 12

Question 12

Business Combinations

A business firm which controls more than half of another firm's equity is a

  1. A.holding company
  2. B.consortium
  3. C.cartel
  4. D.syndicate
Show the answer and explanation

Answer: A (holding company)

Explanation

A holding company owns more than half of the shares of other companies (subsidiaries) and so controls them.