Sun and Moon Corporations Each Have Only One Class of Stock

question 22

Multiple Choice

Sun and Moon Corporations each have only one class of stock outstanding. Their stock ownership is shown below. Which of the four stock ownership changes that are illustrated is the minimum change that is needed if Sun and Moon Corporations are to be brother-sister corporations? (Assume the two corporations are equally valued.)

• A) No stock ownership change is required.
• B) Charles must acquire an additional 10% of Sun Corporation.
• C) Charles must acquire an additional 5% of Moon Corporation.
• D) Arthur must acquire an additional 30% of Moon Corporation.

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Definitions:

Operation Phase

The period during which a system, project, or facility is actively functioning and conducting its intended tasks or services.

Cycle View

A perspective or approach that emphasizes considering processes or systems as recurring cycles to better understand and manage them.

Process Division

The segmentation of a business or production process into distinct tasks or activities for efficiency and specialization.

Customer Order

A customer order is a request made by a customer to purchase goods or services from a business.