_____ Pixco (publicly owned) controls Sixco. Pixco could justifiably not consolidate Sixco if:
A) Sixco is having severe difficulty paying its creditors.
B) Sixco operates in a foreign country that has imposed severe long-term capital outflow restrictions.
C) Sixco is controlled only by legal means.
D) None of Sixco's officers or directors are officers or directors of Pixco.
E) None of the above.

Question

Quizplus · Accepted Answer

B) Sixco operates in a foreign country that has imposed severe long-term capital outflow restrictions. This situation can justify not consolidating Sixco because the restrictions could significantly impair Pixco's ability to control Sixco's operational and financial policies, making consolidation impractical or misleading.

_____ Pixco (Publicly Owned) Controls Sixco