In corporate structures, what term describes a subordinate business entity controlled by a parent company?

In corporate structures, what term describes a subordinate business entity controlled by a parent company?

• A. Coroner
• B. Deterrent
• C. Subsidiary
• D. Indictment

Answer: (C)

In corporate structures, a parent company that has control over another business creates a subordinate entity known as a subsidiary. Control usually comes from owning a majority of voting shares or other governance rights, which lets the parent appoint the board and set strategic directions. Subsidiaries remain separate legal entities, even though they are guided by the parent. The other terms listed belong to different contexts: a coroner handles death investigations, a deterrent is something that discourages wrongdoing, and an indictment is a formal criminal accusation. None of these describe a parent-controlled business unit.

In corporate structures, a parent company that has control over another business creates a subordinate entity known as a subsidiary. Control usually comes from owning a majority of voting shares or other governance rights, which lets the parent appoint the board and set strategic directions. Subsidiaries remain separate legal entities, even though they are guided by the parent. The other terms listed belong to different contexts: a coroner handles death investigations, a deterrent is something that discourages wrongdoing, and an indictment is a formal criminal accusation. None of these describe a parent-controlled business unit.