In a group that has a multiple subsidiary structure, the direct non-controlling interest is entitled to:

A) no share of post-acquisition equity.
B) a proportionate share of pre-acquisition equity only.
C) a proportionate share of post-acquisition equity only.
D) a proportionate share of both pre-acquisition and post-acquisition equity.

Question

William Ferriss · Accepted Answer

Final Answer : D, Explanation :  Direct non-controlling interest in a group with a multiple subsidiary structure is entitled to a proportionate share of both pre-acquisition and post-acquisition equity. This is because they hold an ownership interest in the parent company and are therefore entitled to a share of any equity the parent company holds both before and after the acquisition of subsidiary companies.

Definitions

Learning Objectives

Learning Objectives

Related questions