What term describes a business comprised of two distinct companies where one controls the other?

The term "Parent-Subsidiary" accurately describes a business structure where one company, referred to as the parent company, holds a controlling interest in another company, known as the subsidiary. In this arrangement, the parent company has the authority to make major decisions and oversee the operations of the subsidiary, while the latter typically retains some level of independence in its daily operations. This relationship helps in resource sharing and leveraging the strengths of both businesses for enhanced growth and profitability.

In contrast, a franchise entails an agreement where a franchiser permits a franchisee to operate a business under its brand and system but does not indicate control in the same way a parent company controls a subsidiary. A joint venture is a collaborative effort where two or more companies come together for a specific project or purpose but do not have a controlling relationship over each other. Lastly, a merger involves the combination of two companies into a single entity, differing from the parent-subsidiary dynamic, where control is clearly defined and retains the legal separation of entities.