Multiple Choice
Eastpac Bank has lent Alexandra Ltd $500 000. Part of the loan contract prevents Alexandra from borrowing money in the future from other banks without the permission of Eastpac. As a result of this relationship:
A) Eastpac Bank is regarded as a parent entity of Alexandra Limited.
B) Alexandra Limited is regarded as a subsidiary of Eastpac Bank.
C) a parent-subsidiary relationship does not exist between these two parties.
D) a parent-subsidiary relationship is regarded as existing between these two parties as Eastpac Bank is able to direct the relevant activities of Alexandra Limited.
Correct Answer:
Verified
Correct Answer:
Verified
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