An Acquisition in Which a Parent (P)acquires Shares in a Subsidiary

question 11

Multiple Choice

An acquisition in which a parent (P) acquires shares in a subsidiary (S1) after that subsidiary (S1) has acquired shares in its subsidiary (S2) is referred to as a/an:

• A)passive acquisition
• B)active acquisition
• C)non- sequential acquisition
• D)sequential acquisition

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Definitions:

Lifetime Subscription

A one-time payment plan for a product or service that grants the subscriber access for the lifetime of the product or service.

Annually

Occurring once every year.

Renewal Rate

The percentage of customers or subscribers who choose to renew their contracts or agreements over a specified period.

Constant Dollar Withdrawals

A method of withdrawing funds from an investment account where the amount adjusted for inflation remains the same over time.