A Company Owns 80% of the Voting Shares of B

question 55

Multiple Choice

A Company owns 80% of the voting shares of B Company,which in turn owns 70% of the shares of C Company.There are no outstanding warrants or options which would enable holders of other instruments to acquire additional voting shares of any of these companies.In this scenario,

• A)A has no control over C because it does not own any shares of C Company.
• B)A has direct control over C.
• C)A has indirect control over C.
• D)control cannot be determined from the information given.

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Definitions:

Proportions

A statistical measure that describes the size of a part in relation to the whole, often expressed as a fraction or percentage.

Chi-squared Goodness-of-fit Test

A statistical test used to determine whether sample data fits a population with a specified distribution.

Test Statistic

A value calculated from sample data during a hypothesis test. It is used to determine whether to reject the null hypothesis.

Chi-squared

A statistical test used to determine if there is a significant difference between observed frequencies and expected frequencies in categorized variables.