Which of the following statements is most correct? In the context of consolidation:

Question

Quizplus · Accepted Answer

Pyramiding in the context of consolidation refers to the structure where a parent company controls a subsidiary, which in turn may control another company, and so on, allowing the parent to control significant assets with a relatively small investment. This is because each level down the pyramid, the parent company needs only a majority of the controlling interest (often just over 50%) to control the subsidiary, which can then fully control its own subsidiaries with their assets, amplifying the parent's effective control over assets with less capital outlay.

Which of the Following Statements Is Most Correct? in the Context