Which of the following situations are unlikely to represent control over an investee? A. Owning 51%, but the constitution requires that decisions need the unanimous consent of shareholders B. Having currently exercisable options which would take the shareholding in the investee to 55%
Which of the following situations are unlikely to represent control over an investee? A. Owning 51%, but the constitution requires that decisions need the unanimous consent of shareholders B. Having currently exercisable options which would take the shareholding in the investee to 55%
Chapter22: S Corporations
Section: Chapter Questions
Problem 2DQ
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Question
Which of the following situations are unlikely to represent control over an investee?
A. Owning 51%, but the constitution requires that decisions need the unanimous consent
of shareholders
of shareholders
B. Having currently exercisable options which would take the shareholding in the
investee to 55%
investee to 55%
C. Owning 40% of the shares but having majority of voting rights within the investee
D. Owning 55% and being able to elect 4 of the 7 directors
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