A new company was formed. All the directors appointed in the new company were appointed by XYZ Ltd. Thus the new company is __________ of XYZ Ltd.

Holding

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Subsidiary

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An independent company which has not established business in India.

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None of the above.

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Solution

The correct option is B Subsidiary
A new company was formed. All the directors appointed in the new company were appointed by XYZ Ltd. Thus the new company is a subsidiary of XYZ Ltd. A subsidiary (sub) is a business entity or corporation that is fully owned or partially controlled by another company, known as the parent, or holding, company.
Thus the correct answer is B.

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