Question

What is a non-controlling interest?

A.   An amount equal to investor contributions less dividends distributed.

B.   Amounts distributed to investors that own less than a controlling interest.

C.   A component of debt representing amounts owed to a subset of investors.

D.   The portion of a subsidiary’s net assets not owned by the parent-company.

Answer 1

The answer is option D - The portion of a subsidiary's net assets not owned by the parent company.

Subsidiary's net assets owned by the parent-company is called as Controlling interest and subsidiary's net assets not owned by the parent company is called as non-controlling interest. Hence, option D is correct.