In order for one company to establish control over another,
A)consideration given must include cash or voting shares.
B)it must have elected the majority of the members of the Board of Directors of that company.
C)the acquisition cost must be disbursed to the subsidiary prior to exercising its control.
D)consideration of some kind must be given.However,the consideration given is irrelevant to the substance of the relationship between the two companies.

Question

Quizplus · Accepted Answer

Control can be established through various means, not necessarily through cash or voting shares. The key factor is the ability to direct the activities of the other company, and the consideration given is not relevant to the control relationship.

In Order for One Company to Establish Control Over Another