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In Order for One Company to Establish Control Over Another

Question 70

Multiple Choice

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.

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