Which of the Following Statements Is True Concerning Connecting Affiliations

question 90

Multiple Choice

Which of the following statements is true concerning connecting affiliations and mutual ownerships?

• A) In a mutual ownership, at least two companies in the consolidated group own portions of a third company.
• B) There are at least four companies in a connecting affiliation.
• C) In a connecting affiliation, at least one subsidiary owns stock in the parent company.
• D) In a mutual ownership, the subsidiary owns a portion of the parent's stock.
• E) There are only two companies in a connecting affiliation.