The Following Shareholders Own the Outstanding Stock of Garcia Corporation

question 63

Multiple Choice

The following shareholders own the outstanding stock of Garcia Corporation: $\begin{array}{ll}\text { Ryan } & 100 \text { shares } \\\text { Kayla (Ryan's wife) } & 100 \text { shares } \\\text { Nick (Ryan's brother) } & 100 \text { shares } \\\text { XYZ, Inc. } & 100 \text { shares } \\\text { RST, Inc. } & 100 \text { shares } \\\text { AG Partnership } & 100 \text { shares }\\\text { Total shares outstanding }& 600 \text { shares }\\\end{array}$ Ryan is a 25% partner in AG Partnership. Ryan also is a 55% shareholder in XYZ, Inc. and a 40% shareholder in RST, Inc. How many shares does Ryan constructively (directly and indirectly) own?

• A) 200
• B) 280
• C) 320
• D) 420

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Definitions:

Scientific Method

A systematic procedure for acquiring knowledge that involves observation, hypothesis formulation, experimentation, and conclusion drawing to test validity.

Applied Research

Research conducted to solve practical problems rather than to acquire knowledge for knowledge's sake.

Theoretical Research

Research designed specifically to test some developmental explanation and expand scientific knowledge.

Hypothesis

A prediction stated in a way that permits it to be tested.