Sarah Kern owns 80 percent of the shares of Kern Ltd. and 5 percent of the shares of Lorne Inc. Kern Ltd. owns 30 percent of the shares of Lorne Inc. Sarah's 12 year old daughter owns 25 percent of the shares of Lorne Inc. There are no other shareholders who hold shares in both Companies. Are Kern Ltd. and Lorne Inc. associated? Explain your conclusion.

Question

Quizplus · Accepted Answer

The Answer of Sarah Kern owns 80 percent of the shares of Kern Ltd. and 5 percent of the shares of Lorne Inc. Kern Ltd. owns 30 percent of the shares of Lorne Inc. Sarah's 12 year old daughter owns 25 percent of the shares of Lorne Inc. There are no other shareholders who hold shares in both Companies. Are Kern Ltd. and Lorne Inc. associated? Explain your conclusion.

Sarah Kern Owns 80 Percent of the Shares of Kern