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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Definitions:

Technologically Progressive Industry

An industry characterized by rapid and continuous technological innovation, leading to dynamic growth and evolution of its products and services.

Long-Run Supply Curve

A graphical representation showing the quantities of a good or service that a firm is willing and able to supply at different prices over a period where all inputs can be varied.

Constant-Cost Industry

Constant-Cost Industry refers to an industry in which the input prices do not change as industry output changes, leading to a flat supply curve.

Long-Run Equilibrium

A state where all factors of production and inputs can be adjusted by firms, and no economic forces are inducing firms to change their output or production levels.