what is subsidiary company, explain brief?
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Answer / neha
A company controlled by another company. A company is deemed
to be a subsidiary of another if (but only if): (a) that
other (i) is a member of it and controls the composition of
its board of directors; or (b) holds more than half in
nominal value of its equity share capital; or (b) the
first-mentioned company is a subsidiary of any company which
is that others subsidiary.
| Is This Answer Correct ? | 80 Yes | 13 No |
Answer / ankita
in short whenever a company takes 51 percent or more shares
of another compny...
then the latter co is called subsidiary compyy...
| Is This Answer Correct ? | 33 Yes | 28 No |
Answer / praveen
A company controlled by another company. A company is deemed
to be a subsidiary of another if (but only if): (a) that
other (i) is a member of it and controls the composition of
its board of directors; or (b) holds more than half in
nominal value of its equity share capital; or (b) the
first-mentioned company is a subsidiary of any company which
is that others subsidiary
| Is This Answer Correct ? | 8 Yes | 3 No |
Answer / deepak
A company controlled by another company. A company is deemed
to be a subsidiary of another if (but only if): (a) that
other (i) is a member of it and controls the composition of
its board of directors; or (b) holds more than half in
nominal value of its equity share capital; or (b) the
first-mentioned company is a subsidiary of any company which
is that others subsidiary.
| Is This Answer Correct ? | 9 Yes | 8 No |
Answer / master of moster
a company controlled by another company a company is deemed
to be subsidiary of another company if its board of
directors holds more than half share capital.the first
mentioned company is subsidiary of any company which is that
other subsidiary
| Is This Answer Correct ? | 2 Yes | 1 No |
Answer / md. faizur rahman.
When a company acquires majority share in the ownership capital or is in a position to influence or control the management of the other company, the company is called a Holding Company and the other company its Subsidiary....
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / harsh dave
neha ur ans in perfect...this is what i was looking
for..keep posting such stuff..Harsh..
| Is This Answer Correct ? | 9 Yes | 9 No |
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Occasionally it is said that issuing convertible bonds is better than issuing stock when the firms shares are undervalued. Suppose that the financial manager of Decent Furniture Company does in fact have inside information indicating that the decent stock price is too low. Decent furniture earnings will in fact be higher than investor’s expectations. Suppose further that the inside information cannot be released without giving away a valuable competitive secret. Clearly, selling shares at the present low price would harm Decent’s existing shareholders. Will they also lose if convertible bonds are issued? If they do lose in this case, is the loss more or less than it would be if common stock is issued? Now suppose that investors forecast earnings accurately, but still under value the stock because they overestimate Decent’s actual business risk. Does this change your answer to the questions posed in the preceding paragraph? Explain.
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