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GCE Commerce 1990 Question 87

Question 87

Business Combinations

A holding company assumes control of its subsidiaries through

  1. A.taking over routine administration
  2. B.becoming the principal customer
  3. C.majority shareholding
  4. D.paying all the debts outright
  5. E.taking over only the assets.
Show the answer and explanation

Answer: C (majority shareholding)

Explanation

A holding company controls other companies by owning more than half of their voting shares.