Pyramid ownership occurs when a minority-controlling shareholder owns a controlling stake in another company. In this case, whoever controls the Ochs-Sulzberger voting trust controls The New York Times newspaper. Discuss the ethical aspects of pyramid ownership.
Pyramid ownership occurs when one firm owns the shares of another, which owns the shares of another, and so on. Assume that firm A owns 51% of firm B, and that firm B owns 51% of firm C. In this case firm A can control firm B and firm B can control firm C. This means that, in essence, firm A can control firm C through its control of the intermediary firm B. However, firm A’s ownership interest is only 26.01% (51% of 51%). As such, firm A can extract both pecuniary and non-pecuniary benefits from its control of firm C even though it only has a 26.01% cash-flow interest in the firm. The ethical aspects of this situation are analogous to the ethical aspects of a MCS that can opportunistically benefit itself at the expense of the other (majority) shareholders.
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In which section of the financial statements would PaidIn Capital from Sale of Treasury Stock be reported?
a. other expense on income statement b. intangible asset on the balance sheet c. stockholders' equity on balance sheet d. other income on income statement
The Squash Company's shareholders' equity on January 1, 2018 was $3,125,500. During 2018, Squash Company reported the following: Net income of $575,325. Declared cash dividends totaling $125,000; the dividends had not been paid as of December 31, 2018 Issued 10,000 shares of $5 par value common stock at $9 per share. Purchased 5,000 shares of its common stock for $9.75 per share; the shares are being held as treasury shares. Sold 1,500 shares of treasury stock for $9.25 per share. Required:Prepare the balance of shareholders' equity as of December 31, 2018.
What will be an ideal response?
To group knowledge into manageable data, companies use _____ software.
A. clickstream B. autocategorization C. data mining D. OLAP
Define these terms: financial statement, balance sheet, income statement, and audit. Explain the use of each.
What will be an ideal response?