Question

The parent company acquires full control over the foreign company by making 100 per cent investment in __________.

• A. debentures
• B. mutual funds
• C. preference share capital
• D. equity capital

Answer 1

Answer: (D)

equity capital

• When a company makes a full investment of equity share capital of a company, the company is owned by the investor.
  
• The parent company acquires full control over the foreign company by making 100 per cent investment in equity capital.