Which of the following is/are true?

a. When one firm, P, owns more than 50% of the voting stock of another company, S, P can control the activities of S in terms of broad policy making.
b. When one firm, P, owns more than 50% of the voting stock of another company, S, P can control the activities of S in terms of day-to-day operations.
c. When one firm, P, owns more than 50% of the voting stock of another company, S, common usage refers to the majority investor as the parent and to the majority-owned company as the subsidiary.
d. U.S. GAAP and IFRS require the parent to combine the financial statements of majority-owned companies with those of the parent in consolidated financial statements.
e. all of the above


E

Business

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