5. Majority, Active A parent firm holds more than 50% of the voting stock of another firm, called the subsidiary firm.
{"Image DocumentName": "5. Majority, ActiveA parent firm holds more than 50% of the voting stock of another firm, called the subsidiary firm.", "Image ImageDescription": "This gives the parent complete control over the subsidiary. The portion of the subsidiary not owned by the parent is called the minority interest. A corporation is a legal entity and not necessarily an economic entity. Laws might require or allow separate legal entities that are controlled by one entity, thus being one economic entity. Certain legal risks can be reduced by having legally separate corporations. Copyright \uf0e3 2000 by Harcourt Inc. All rights reserved.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}