ITPEC IP October 2021 Question 67
ITPEC IP October 2021 — Question 67 of 100
Company C can increase its control over Company D by acquiring additional shares, so the correct combination is (b). A larger voting share generally gives the investor greater influence over shareholder decisions and selection of directors.
Answer (b)
Why not others:
- selling shares would reduce rather than increase ownership and control
- dispatching an auditor does not itself increase the shareholding ratio
- dispatching directors may exercise influence, but it is not the action that directly increases ownership control in the stated investment relationship
Key rule: Greater ownership of voting shares generally increases an investor's power to influence or control the investee.
AI-generated — may contain errors
The original exam layout is preserved in the image so diagrams, formulas, tables, and code remain accurate.
This question comes from an official ITPEC past paper. ITPEC Practice is an independent study tool and is not affiliated with ITPEC. See the official IP past-paper collection or Report an issue.