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A Company Owns 80% of the Voting Shares of B

Question 55

Multiple Choice

A Company owns 80% of the voting shares of B Company,which in turn owns 70% of the shares of C Company.There are no outstanding warrants or options which would enable holders of other instruments to acquire additional voting shares of any of these companies.In this scenario,


A) A has no control over C because it does not own any shares of C Company.
B) A has direct control over C.
C) A has indirect control over C.
D) control cannot be determined from the information given.

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