Question
Geegle Corporation has two classes of common stock: 80,000 outstanding Class A shares with no voting rights; and 20,000 outstanding Class B shares with voting
Geegle Corporation has two classes of common stock: 80,000 outstanding Class A shares with no voting rights; and 20,000 outstanding Class B shares with voting rights. Doodle Corporation, a public company, owns 11,000 Class B shares. Which of the following statement is correct?
Doodle may, but is not required, to file consolidated financial statements which includes Geegle. | ||
Since Doodle only owns 11% of the total number of shares outstanding, it does not have control and therefore may not file consolidated financial statements which includes Geegle. | ||
Since Doodle owns 55% of the voting rights, it has control and therefore must file consolidated financial statements which includes Geegle. | ||
Doodle owns 55% of the voting rights and has control, but since it only owns 11% of the cash flows rights it may not file consolidated financial statements which includes Geegle. | ||
None of the statements is correct. |
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