A owns 80% of B,which in turn owns 55% of C.Which of the following statements is correct?

Question

Quizplus · Accepted Answer

A owns a majority stake in B, which means that A has indirect control over C through B's ownership stake in C. A does not have direct control over C because it does not own a majority stake in C. Therefore, option B is the correct answer. Option C can be eliminated because A indirectly controls C through its ownership in B. Option D does not apply as it refers to a situation where control is contingent upon certain events or circumstances, which is not mentioned in the question. Option A is incorrect as A does not own a majority stake in C.

A Owns 80% of B,which in Turn Owns 55% of C.Which