Is there a parent-subsidiary relationship in each of the situations below? If the situation is...
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Is there a parentsubsidiary relationship in each of the situations below? If the situation is ambiguous, identify the factors that will determine if a parentsubsidiary relationship exists. A Company A signs an agreement with company B to set up company C in China. Both company And Company B will have voting rights in company C B Company A buys of the net assets company B The purchase price includes goodwill. Company B is subsequently dissolved. C Company A arranges to have its shares acquired by Company B who issues new shares to the owners of company A The owners of Company A are also the executive directors of Company A Company B gives three of five seats on the board of directors to the executive directors of company A
Is there a parentsubsidiary relationship in each of the situations below? If the situation is ambiguous,
identify the factors that will determine if a parentsubsidiary relationship exists.
A Company A signs an agreement with company B to set up company C in China. Both company And Company B will have voting rights in company C
B Company A buys of the net assets company B The purchase price includes goodwill.
Company B is subsequently dissolved.
C Company A arranges to have its shares acquired by Company B who issues new shares to the
owners of company A The owners of Company A are also the executive directors of Company A Company B gives three of five seats on the board of directors to the executive directors of
company A
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