Concept:A subsidiary is a company whose board of directors or equity ownership is controlled by another company.
Explanation:When one company holds more than half of another company's equity shares, it gains control over that company.
Also, if a company controls the composition of another company's board of directors, the controlled company is a subsidiary.
The controlling company is called the holding company or parent company.
The company being controlled is called the subsidiary company.
In this case, the company described is the one that is under the control of another company, not the controlling company itself.
Therefore, it is correctly termed a subsidiary.
Answer:A. Subsidiary