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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 NOI 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.
It was from the BPP revision kit- Mock Exam 1 Section B 36b. A confusing question but thank you for clarifying.
In my edition of the BPP Revision Kit is gives the answer as ‘no’ to both of these two statements.
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