Discuss the Conditions Under Which the SEC Would Assume a Presumption

question 11

Essay

Discuss the conditions under which the SEC would assume a presumption of control.Additionally, under what circumstances might consolidation be required even though the parent does not control the subsidiary?
When would it not be appropriate to consolidate when more than 50% of the voting stock is held?

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Definitions:

Interactional Justice

The fairness perceived in the communication processes used during the implementation of organizational procedures.

Downsizing Decision

The process of reducing an organization's workforce to improve efficiency or reduce costs.

Interpersonal Treatment

The behavior and manner in which individuals interact and treat each other within an organization, impacting the work environment and employee relations.

Job Loss

The termination of employment due to reasons such as downsizing, restructuring, or company closure, resulting in unemployment for affected individuals.