Which of the Following Statements Is True Concerning Connecting Affiliations

question 90

Multiple Choice

Which of the following statements is true concerning connecting affiliations and mutual ownerships?

• A) In a mutual ownership, at least two companies in the consolidated group own portions of a third company.
• B) There are at least four companies in a connecting affiliation.
• C) In a connecting affiliation, at least one subsidiary owns stock in the parent company.
• D) In a mutual ownership, the subsidiary owns a portion of the parent's stock.
• E) There are only two companies in a connecting affiliation.

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Definitions:

Industrial Lines

Division or categorization of the economy into segments based on the nature of the activities, such as manufacturing, services, and agriculture.

Labor Spies

Individuals hired by employers to infiltrate, monitor, or gather intelligence on labor unions and employee activities, often to counter organization efforts.

Auto and Steel Industries

Sectors of the economy known for their historical significance in American manufacturing and heavy unionization, often associated with large-scale industrial labor.

Intimidation

The act of deliberately making someone afraid in order to influence their behavior or decisions.