Evan owns 45% of Yolo Corporation and 40% of Xeqz Corporation.Farra owns 37% of Yolo Corporation and 48% of Xeqz Corporation.Gao owns 5% of Yolo Corporation but does not own any stock in Xeqz.Each corporation has only one class of stock.Yolo and Xeqz Corporations form a(an)

Question

Quizplus · Accepted Answer

Evan and Farra each own more than 50% of one corporation, but they do not own more than 50% of the same corporation, which would be necessary for a parent-subsidiary controlled group. Therefore, they form a brother-sister controlled group. Gao's ownership in Yolo Corporation is irrelevant for the determination of the group type.

Evan Owns 45% of Yolo Corporation and 40% of Xeqz