What defines a wholly owned subsidiary?

A wholly owned subsidiary is defined as a company that is fully owned by another company. This means that the parent company holds 100% of the subsidiary’s shares, giving it complete control over the subsidiary's operations, assets, and decisions. This structure allows the parent company to manage the subsidiary’s resources and strategy without needing to consult or share control with any external shareholders.

In this arrangement, the wholly owned subsidiary can operate under its own brand or name, but it is legally and financially part of the parent company, which benefits from any profits generated without having to share them with outside investors. This structure can offer advantages such as simplified management, reduced risk, and enhanced strategic alignment.

The other options describe different organizational structures: an independent business does not imply ownership by another entity, a partnership involves shared ownership between entities rather than total ownership, and a government-controlled corporation typically refers to entities owned by a government rather than a private corporation.