Asked by Erinn Whitlock on Jul 04, 2024
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What ownership pattern is referred to as mutual ownership? Describe briefly or illustrate with a diagram.
Mutual Ownership
A type of ownership where two or more parties jointly own an asset or a company, sharing in its risks and profits.
Ownership Pattern
The distribution of ownership in a company, detailing the different types of shareholders and their respective shares.
- Understand and describe various ownership structures and their implications on consolidation accounting.
Verified Answer
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Visaalashi kalaivananJul 11, 2024
Final Answer :
Mutual ownership exists when a subsidiary owns common stock of its parent corporation or when two subsidiaries own shares of each other's common stock.
Learning Objectives
- Understand and describe various ownership structures and their implications on consolidation accounting.