Consider a Four-Tier Pyramid and a Single Operating Company

question 44

Multiple Choice

Consider a four-tier pyramid and a single operating company.Assume that 51% of the votes confer control at each tier.What is the minimum percentage ownership (approximately) at the highest level in the pyramid that will enable control of the operating company?

• A)13%
• B)26%
• C)50%
• D)51%

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Definitions:

Repudiation

In a contractual context, repudiation refers to one party's clear indication that they will not fulfill their contractual obligations, leading to a breach of contract.

10-Speed Touring Bicycle

A type of bicycle designed for long-distance riding, equipped with a gear system that has ten different speeds.

Constructed

Built or formed by putting together different parts or elements.

Contracted

Engaged in a formally agreed-upon arrangement, typically involving work or services in exchange for compensation.