North Bank has lent Sophie Limited $600000. Part of the loan contract prevents Sophie from borrowing money in the future from other banks without the permission of North. As a result of this relationship: North Bank is regarded as a parent entity of Sophie Limited. a parent-subsidiary relationship exists between these two parties as North Bank has the power to obtain a variable return from Sophie Limited. a parent-subsidiary relationship does not exist between these two parties. a parent-subsidiary relationship exists between these two parties as North Bank is able to direct the relevant activities of Sophie Limited