Asked by Alexandria Russell on Apr 24, 2024
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Assume that Scipio Ltd has a controlling interest in Africanus Ltd.As a result of this relationship:
A) the directors of Africanus Ltd have a fiduciary duty to act in the best interests of Scipio Ltd.
B) because of its controlling interest in Africanus Ltd, Scipio Ltd will take over the management of Africanus Ltd from the board of that company.
C) the board of Africanus Ltd will be dissolved as they no longer have any real power in Africanus Ltd.
D) none of the above.
Controlling Interest
An ownership interest in a business entity in terms of voting rights, sufficient to control the policies and management of the entity.
Fiduciary Duty
An obligation to act in the best interest of another party, for example, a company's management acting in the best interests of its shareholders.
Management
The process of dealing with or controlling things or people, often within an organization or a project, including planning, organizing, leading, and controlling resources.
- Familiarize oneself with the guidelines and requisites for a firm to prepare consolidated financial accounts.
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Learning Objectives
- Familiarize oneself with the guidelines and requisites for a firm to prepare consolidated financial accounts.
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