Consider a four-tier pyramid and a single operating company.Assume that 51% 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, each tier requires 51% control. 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