Which of the following situations is likely to represent control over an investee?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Which of the following situations is likely to represent control over an investee?
i.
Owning 45% of the shares and having an agreement with another shareholder that allows you to
use their 10% of the votes
ii.
Owning 35% of the ordinary shares and 80% of the preference shares of the investee
ii.
Owning 48% where this provides significant influence over the investee
iv.
Owning all of the 10 class B ordinary shares (1 vote per share) but none of the 8 class A ordinary
shares that provide 2 votes per share
a. (iv only)
b. (iii) only
C. (i) only
O d. (iii) and (iv)
e. (i) and (ii)
f. (ii) only
g. (i), (ii) and (iv)
Transcribed Image Text:Which of the following situations is likely to represent control over an investee? i. Owning 45% of the shares and having an agreement with another shareholder that allows you to use their 10% of the votes ii. Owning 35% of the ordinary shares and 80% of the preference shares of the investee ii. Owning 48% where this provides significant influence over the investee iv. Owning all of the 10 class B ordinary shares (1 vote per share) but none of the 8 class A ordinary shares that provide 2 votes per share a. (iv only) b. (iii) only C. (i) only O d. (iii) and (iv) e. (i) and (ii) f. (ii) only g. (i), (ii) and (iv)
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