Sun and Moon Corporations Each Have Only One Class of Stock

question 107

Multiple Choice

Sun and Moon Corporations each have only one class of stock outstanding.Their stock ownership is shown below. $$\begin{array} { | c | c | c | } \hline \text { Shareholder } & \text { Sun Corporation } & \text { Moon Corporation } \\\hline \text { Arthur } & 50 \% & 60 \% \\\text { Brenda } & 20 \% & 40 \% \\\text { Charles } & 30 \% & \ldots \\\hline\end{array}$$ 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)Arthur or Brenda 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.

---

Definitions:

Chlorinated Hydrocarbons

Chemical compounds containing chlorine, carbon, and hydrogen, often used as pesticides, solvents, and industrial chemicals, but can be persistent environmental pollutants.

DDT

A synthetic organic compound used as an insecticide, known for its environmental impacts, including the accumulation in the food chain.

Pyrethrum

A natural insecticide made from the dried flower heads of certain chrysanthemum species.

Chrysanthemums

A type of flowering plant, often grown for its brightly colored flowers and used in floral arrangements and festivals.