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- This topic has 5 replies, 2 voices, and was last updated 2 years ago by John Moffat.
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- October 25, 2022 at 12:15 pm #669921
Good afternoon,
I don’t understand why one of the following indicates a parent subsidiary relationship but the other doesn’t:
Greater than 50% of the preference shares being held by an investor YES
Greater than 50% of the preference shares – and debt- being held an investor NOOctober 25, 2022 at 5:06 pm #669948I do not know where you read that, but owning more than 50% of the preference shares does not make it a subsidiary. It is owning more than 50% of the equity shares that makes it a subsidiary.
October 26, 2022 at 9:49 am #670017It was from the BPP revision kit- Mock Exam 1 Section B 36b. A confusing question but thank you for clarifying.
October 26, 2022 at 3:52 pm #670044In my edition of the BPP Revision Kit is gives the answer as ‘no’ to both of these two statements.
November 1, 2022 at 4:55 pm #670479Seems like its a typo in the latest edition, but thank you for clarifying!
November 1, 2022 at 5:53 pm #670488You are welcome 🙂
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