Consider a four-tier pyramid and a single operating company.Assume that 51 percent of the votes confer control at each tier.What is the minimum percentage ownership (approximately) at the highest level in the pyramid that will enable control of the operating company?

Question

Quizplus · Accepted Answer

In a four-tier pyramid, control is achieved by owning 51% at each level. Therefore, the minimum percentage ownership at the top level is 0.51^4, which is approximately 13%.

Consider a Four-Tier Pyramid and a Single Operating Company