In which of the following instances does Entity A have control over Entity B? A. Entity A is the ultimate boss of Entity B. Entity A makes all the major decisions and earns profit the most if Entity B earns profit, but suffers the most if Entity B incurs loss B. Entity A holds majority of the shares of Entity B. The major holdings entitle Entity A to voting rights that relate solely to administrative tasks. C. Entity A holds a majority of the shares of Entity B and is entitled to a variable return on Entity B’s shares. The relevant activities of Entity B are directed by a third party unrelated to Entity A. D. Entity A holds 90% interest in Entity B. Entity A’s interest in the earnings of Entity B is fixed at 10% of the aggregate par value of Entity A’s shareholdings.
In which of the following instances does Entity A have control over Entity B?
A. Entity A is the ultimate boss of Entity B. Entity A makes all the major decisions and earns profit the most if Entity B earns profit, but suffers the most if Entity B incurs loss
B. Entity A holds majority of the shares of Entity B. The major holdings entitle Entity A to voting rights that relate solely to administrative tasks.
C. Entity A holds a majority of the shares of Entity B and is entitled to a variable return on Entity B’s shares. The relevant activities of Entity B are directed by a third party unrelated to Entity A.
D. Entity A holds 90% interest in Entity B. Entity A’s interest in the earnings of Entity B is fixed at 10% of the aggregate par value of Entity A’s shareholdings.
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