Which of the following describes a subsidiary? A) Employees own stock

QUESTION

Which of the following describes a subsidiary?

A) Employees own stock in the company that employs them.
B) It does not seek personal profit for its owners.
C) It is operated by owners offering professional services.
D) It operates in the United States but is incorporated in another country.
E) Most of its stock is owned by another corporation.

ANSWER

Answer: E
Explanation: E) A subsidiary is defined as a company whose stock is largely owned by another corporation.