Sun and Moon Corporations Each Have Only One Class of Stock

question 125

Multiple Choice

Sun and Moon Corporations each have only one class of stock outstanding.Their stock ownership is shown below. Which of the four stock ownership changes that are illustrated is the minimum change that is needed if Sun and Moon Corporations are to be brother-sister corporations? (Assume the two corporations are equally valued.)

• A) No stock ownership change is required.
• B) Charles must acquire an additional 10% of Sun Corporation.
• C) Charles must acquire an additional 5% of Moon Corporation.
• D) Arthur must acquire an additional 30% of Moon Corporation.

Understand the implications of organizational growth on structure.

Identify different organizational structures and their suitability to various business scenarios.

Understand the roles of first-line, middle, and top managers in organizational hierarchies.

Understand the mechanisms and processes involved in issuing new securities to the public, including initial public offerings (IPOs) and seasoned equity offerings (SEOs).

---

Definitions:

Visual Interpretation

The process of examining visual information, such as charts, graphs, or images, to understand and analyze its content.

Slope

The measure of the steepness or incline of a line, typically represented as the ratio of the change in the y-coordinate to the change in the x-coordinate between two points on the line.

Consumption of Pizza and Tacos

Consumption of Pizza and Tacos refers to the act of eating or using pizza and tacos, often studied to understand dietary habits, consumer behavior, or economic demand for these foods.

Factor of Production

Resources used in the creation of goods and services, traditionally categorized into land, labor, and capital.