Consider a Three-Tier Pyramid and a Single Operating Company

question 15

Multiple Choice

Consider a three-tier pyramid and a single operating company.Assume that 51 percent of the votes confer control at each tier.What is the minimum percentage ownership (approximately) at the highest level in the pyramid that will enable control of the operating company?

• A)100 percent
• B)51 percent
• C)50 percent
• D)26 percent

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Definitions:

Median Income

The middle value of income in a list of incomes ordered from lowest to highest, used as a standard measure to indicate the income level of a typical member of a specific group.

Chapter 13

refers to a type of bankruptcy that involves a repayment plan allowing individuals to pay back their debts over a period of time.

Preferential Payment

A payment made by a debtor to one creditor over others, typically before a bankruptcy, that can be subject to clawback during bankruptcy proceedings.

Chapter 7 Bankruptcy

A type of bankruptcy that involves the liquidation of assets to repay creditors, used when the individual or business is unable to reorganize debt and lacks the means to pay it off.