Asked by Derek Timmer on May 17, 2024
Verified
Parent Ltd owns 90% of S1 Ltd and S1 Ltd owns 60% of S2 Ltd.Parent Ltd's indirect ownership interest in S2 Ltd is:
A) 90%.
B) 60%.
C) 54%.
D) none of the above.
Indirect Ownership Interest
A stake in a company or entity that is not held directly by the owner but through another vehicle, such as ownership of a parent company that owns the entity.
- Apprehend the impact that direct and indirect ownership has on the practices of governance and unification.
Verified Answer
SD
Sandhya DotelMay 21, 2024
Final Answer :
C
Explanation :
To calculate the indirect ownership interest of Parent Ltd in S2 Ltd, we need to multiply the ownership percentages of S1 Ltd and S2 Ltd.
Parent Ltd owns 90% of S1 Ltd, which in turn owns 60% of S2 Ltd.
So, the indirect ownership interest of Parent Ltd in S2 Ltd is:
90% * 60% = 54%
Therefore, the best choice is C, with an indirect ownership interest of 54%.
Parent Ltd owns 90% of S1 Ltd, which in turn owns 60% of S2 Ltd.
So, the indirect ownership interest of Parent Ltd in S2 Ltd is:
90% * 60% = 54%
Therefore, the best choice is C, with an indirect ownership interest of 54%.
Learning Objectives
- Apprehend the impact that direct and indirect ownership has on the practices of governance and unification.
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