A Pyramidal Ownership Structure Is One in Which

question 58

Multiple Choice

A pyramidal ownership structure is one in which

• A)a shareholder controls a holding company that owns a controlling block of another company, which in turn owns controlling interests in yet another company, and so on.
• B)equity cross-holdings among a group of companies, such as keiretsu and chaebols can be used to concentrate and leverage voting rights to acquire control.
• C)a combination of these schemes may also be used to leverage control in a pyramidal ownership structure.

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