Asked by
Jeremy Blanchette Jr.
on Dec 01, 2024
Verified
Jonas Co. owned 60% of Kara Co.'s voting shares and 25% of Lynn Ltd.'s voting shares. Kara owns 30% of Lynn's voting shares. Which of the following statements is true?
A) Kara is the only subsidiary of Jonas.
B) Both Kara and Lynn are subsidiaries of Jonas.
C) Lynn is a subsidiary of both Kara and Jonas.
D) Lynn is the only subsidiary of Kara.
Voting Shares
Shares that grant the holder the right to vote on company matters, such as electing the board of directors or making decisions affecting the company's policies.
- Understand the criteria for classifying an entity as a subsidiary and the implications for reporting.
Verified Answer
NT
Learning Objectives
- Understand the criteria for classifying an entity as a subsidiary and the implications for reporting.