XYZ Inc Owns 55% of DEF Inc

question 60

Multiple Choice

XYZ Inc. owns 55% of DEF Inc.'s 100,000 outstanding voting shares. Another company, GHI Inc., owns 40%, with the remaining shares being held by many individual investors. GHI Inc. also owns $25,000,000 worth of DEF Inc.'s $1,000 par value bonds, each of which is convertible to one voting share of DEF Inc. Which of the following statements regarding the control of DEF Inc. is correct?

• A) XYZ Inc. has control over DEF Inc. as it owns a majority of DEF Inc.'s currently outstanding voting shares.
• B) XYZ Inc. does not have control over DEF Inc., as it cannot exercise control over DEF's strategic operating, investing and Financing activities without the cooperation of GHI Inc.
• C) XYZ Inc. has de facto control over DEF Inc.
• D) As long as GHI Inc. does not exercise its option to convert its bonds to voting shares, XYZ Inc. has control over DEF Inc.

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Definitions:

Per Se Treatment

A legal doctrine implying that an action or condition is inherently illegal without the necessity of proving harm or competitive disadvantage.

Rule Of Reason

A legal doctrine used in antitrust law to determine if a business practice is unlawful based on its impact on competition.

Joint Action

A collaborative effort where two or more parties work together towards a common goal or objective.

Section 1

This term is too vague without additional context to provide a specific definition. It could refer to different documents, acts, or legal sections depending on the context.