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Teniyakin Saguibo
on Nov 02, 2024

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In a group that has a multiple subsidiary structure, the indirect 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) no share of either pre-acquisition or post-acquisition equity.

Indirect Non-Controlling Interest

A non-controlling interest that a parent company has in a subsidiary through another subsidiary or subsidiaries, complicating the calculation of ownership percentages.

Post-Acquisition Equity

The equity value of an acquired company after the acquisition date, including adjustments from the acquisition and ongoing operations.

Multiple Subsidiary

A business structure wherein a single parent company owns several subsidiary companies.

  • Distinguish between pre-acquisition and post-acquisition equity in the context of non-controlling interests.
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Haley YarbroughNov 04, 2024
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