Company a Inc

question 49

Essay

Company A Inc. owns a controlling interest in Company B. which is located overseas. Company A and B are in entirely different lines of business. Company A wishes to file a request allowing it to not consolidate its financial statements with those of Company B. Assuming that Company A is based in Canada, is this allowed? Explain.

---

Definitions:

General Partners

Individuals in a partnership who are responsible for the management of the partnership and are personally liable for its debts.

Consent

An agreement or permission given by an individual knowingly and freely without any form of coercion.

Limited Partners

Investors in a limited partnership who are not involved in day-to-day management and whose liability is limited to their investment.

Limited LLC Member

An investor in a Limited Liability Company (LLC) who does not participate in its daily management and whose liability is restricted to the amount of their investment.