A Pyramidal Ownership Structure Is One in Which

question 33

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.
• D)none of the options

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against the cost of a fixed asset, reducing its book value over time.

Permanent Account

An account that carries its ending balance over to the next accounting period, typically representing real accounts like assets, liabilities, and equity.

Closing Process

The steps taken at the end of an accounting period to prepare accounts for the next period, including zeroing out temporary accounts.

Closing the Books

Closing the books is an accounting process involving updating ledger accounts at the end of an accounting period to prepare financial statements.