In Order for One Company to Establish Control Over Another

question 70

Multiple Choice

In order for one company to establish control over another,

• A)consideration given must include cash or voting shares.
• B)it must have elected the majority of the members of the Board of Directors of that company.
• C)the acquisition cost must be disbursed to the subsidiary prior to exercising its control.
• D)consideration of some kind must be given.However,the consideration given is irrelevant to the substance of the relationship between the two companies.

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Definitions:

Transformation

The process of changing the structure, composition, or form of a molecule or substance through chemical reactions.

Methylbutan-1-ol

A primary alcohol derived from butane by replacing one hydrogen atom with a hydroxyl group at the first carbon.

2-Methylbutanal

A type of aldehyde with a five-carbon chain where the second carbon atom from the end is substituted with a methyl group.

1-Hexyne

An alkyne hydrocarbon with the chemical formula C6H10, characterized by a triple bond between the first and second carbon atoms.