In corporate structure, what term describes a company controlled by another company?

In corporate structure, what term describes a company controlled by another company?

• A. An Independent Company
• B. A Company Controlled by Another
• C. A Joint Venture
• D. A Subsidiary

Answer: (B)

The idea being tested is understanding how to describe a relationship of control in a corporate structure. When one company has control over another, the description “a company controlled by another” directly communicates the situation—one company exerts control over the other. That phrasing is the best match to what the question is asking because it explicitly states the relationship of control, which is the core idea here. The other possibilities refer to different scenarios: an independent company is not under control, a joint venture is a collaborative venture between parties, and while a subsidiary is the term for the entity that is controlled, the description that emphasizes the relationship itself best fits the question’s wording.

The idea being tested is understanding how to describe a relationship of control in a corporate structure. When one company has control over another, the description “a company controlled by another” directly communicates the situation—one company exerts control over the other. That phrasing is the best match to what the question is asking because it explicitly states the relationship of control, which is the core idea here.

The other possibilities refer to different scenarios: an independent company is not under control, a joint venture is a collaborative venture between parties, and while a subsidiary is the term for the entity that is controlled, the description that emphasizes the relationship itself best fits the question’s wording.