An Ultimate Parent Entity May Obtain a Controlling Indirect Interest

question 36

True/False

An ultimate parent entity may obtain a controlling indirect interest in another entity as a result of holding a controlling interest in the immediate parent entity of that other entity:

---

Definitions:

Drawee

A drawee is the party in a transaction, usually a bank, upon whom a check or draft is drawn and is responsible for paying the specified amount.

Time-certain Requirement

A provision in a contract or agreement that specifies a precise time by which an obligation must be fulfilled.

Constructive Conflict

refers to conflict that, when managed well, results in productive disagreement, leading to creative solutions and improvements without personal attacks.

Functional Conflict

A type of conflict that is constructive and encourages diversity of opinions, leading to improvements in processes or outcomes.