Question
1. Company A owns 70 per cent of the shares in Company B. Company B owns 40 per cent of the share in Company C.
1. Company A owns 70 per cent of the shares in Company B. Company B owns 40 per cent of the share in Company C. Company A also owns
25 per cent of the shares in Company C.
2. Company X owns 60 per cent of the shares in Company Y. Company Y owns 40 per cent of the shares in Company Z. Company X also owns 15 per cent of the shares in Company Z.
Which ONE of the following statements is correct?
a. Company C is an associate of Company A, and Company Z is a subsidiary of Company x
b. Company C is a subsidiary of Company A, and Company Z is an associate of Company X
c. Company C is a subsidiary of Company A, and Company Z is a subsidiary of Company X
d. Company C is an associate of Company A, and Company Z is an associate of Company X
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Accounting For Managers And Entrepreneurs
Authors: Charles T. Horngren
9th Edition
1323167897, 9781323167892
