Caloundra Limited Has an 85% Ownership Interest in Minchinton Limited

question 50

Multiple Choice

Caloundra Limited has an 85% ownership interest in Minchinton Limited. Minchinton Limited has a 55% ownership interest in Moreton Limited. As a result of these ownership interests, there is a direct ownership interest in Moreton Limited amounting to:

• A) 15%.
• B) 8%.
• C) 45%.
• D) 85%.

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Definitions:

Right of Recourse

The legal right to demand compensation or payment from a third party after fulfilling an obligation, especially in financial transactions.

Discharge

(1) The termination of an obligation, such as occurs when the parties to a contract have fully performed their contractual obligations. (2) The termination of a bankruptcy debtor’s obligation to pay debts.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, to the person possessing it.

Intelligence

The ability to acquire and apply knowledge and skills, or information gathered for analysis in contexts such as security or business.