general account The ownership ratio has been altered to Simon holding 20 percentand Herb III 15 percent of shares in Owner. All shares of the Ownerbear equal voting rights. The rest of shareholding is dispersed andheld by multiple shareholders, none individually owning more than5 percent of equity. Simon has a contractual right to appoint 2 outof 5 members of the Board of Directors of Owner and the Boardapproves the strategic operational and financial decisions of thecompany. Discuss the nature of the relations of Simon and Herb IIIwith Owner.

1. Ownership Structure:Simon holds 20% of shares in Owner, which makes him the largest individual…

Answered: The ownership ratio has been altered to…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter18: Corporations: Organization And Capital Structure

Section: Chapter Questions

Problem 26P

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financial account
A VIE has three equity holders, Equity Holder 1 owns 20% of the C/S. Equity holder 2 owns 30% of the C/S and equity holder 3 owns 50% of the C/S. Each of the equity holders has 2 votes on a 6-person board. The board makes all decisions affecting the VIE’s policies and practices. Determine which party, if any, is the primary beneficiary and explain briefly why.
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‘An associate is an entity over which the investor has significant influence’ (para 3). Which of the following indicate the presence of significant influence? A. The investor controls the votes of a majority of the board members B. The investor is able to insist that all of the sales of the investee are made to a subsidiary of the investor C. The investor owns 330,000 of the 1,500,000 equity voting shares of the investee
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Susan Casulla, Margie Landicho and Christine Supapo decided to incorporate their business and invited Irene Beltran and Eleanor Eno to join with them. The partnership shall transfer all assets and liabilities to the corporation. Irene Beltran and Eleanor Eno will purchase 250 each of the corporation’s ordinary share. The corporation is authorized to issue 5,000 shares at P50.00 par value per share. The post-closing trial balance after adjustments in preparation for incorporation follows: Yummy Cakes and Pastries Post-closing Trial Balance September 30, 20A Debit Credit Cash 40,000 Merchandise Inventory 70,000 Furniture and Equipment 100,000 Accumulated Depreciation 20,000 Accounts Payable…
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None

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