Discuss the advantages and disadvantages of owning preferred stock instead of common stock of another company. If a parent company already owns a controlling interest in a company's common stock, why would it invest in any preferred stock of the subsidiary? In a multilevel ownership structure, the general process of consolidation is to start making eliminating entries with the subsidiary farthest removed from the parent company and then move up the levels until the direct subsidiary is consolidated with the parent. Why is this the accepted procedure? United parcel service (UPS) provides package delivery services throughout the United States and the world. Discuss the impact of seasonal variations in the delivery business for forecasting the firm's financing requirements