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:

Contingent Liability

A potential financial obligation that may arise in the future, depending on the outcome of a specific event.

Future Event

A possible occurrence that may happen in the future, impacting strategies or decisions in various contexts.

Times Interest Earned

A financial ratio that measures a company's ability to cover its interest expenses on outstanding debt with its before-tax earnings, also known as the interest coverage ratio.