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

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

Essentials Of Investments
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
Problem 1PS
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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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