A Controlling Interest in a Company Implies That the Parent

question 20

Multiple Choice

A controlling interest in a company implies that the parent company​

• A)​owns all of the subsidiary's stock.
• B)​has acquired a majority of the subsidiary's common stock.
• C)​has paid cash for a majority of the subsidiary's stock.
• D)​has transferred common stock for a majority of the subsidiary's outstanding bonds and debentures.

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Definitions:

Federal Government

The national government of a federated state, which is responsible for the areas of governance assigned to it by the constitution.

State Governments

The governing bodies of individual states in a federal system, responsible for local law enforcement, education, and other intra-state issues.

Supreme Court

The highest judicial body in a jurisdiction, often having the final say in matters of law and constitutionality.

Equal Protection

A constitutional principle that requires states to govern impartially, not drawing distinctions between individuals solely on differences that are irrelevant to a legitimate governmental objective.