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The Megac Corporation has an ownership stake in the Sysinc Corporation. The Exino Corporation has an ownership stake in the Naturo Corporation. The Green Valley Corporation has an ownership stake in the Exino Corporation. The Jenyx Corporation and the Sysinc Corporation both have an ownership stake in the Green Valley Corporation. Furthermore, if Corporation A has an ownership stake in Corporation B, then Corporation A has an ownership stake in any corporation that Corporation B has an ownership stake in. But if Corporation A has an ownership stake in Corporation B, then Corporation B cannot have an ownership stake in Corporation A.
Assume that the information provided is accurate and that the ownership stakes listed are the only ones that have ever existed between or among the listed corporations. Select Megac for the listed corporation that Megac could acquire a first-time ownership stake in and select Jenyx for the listed corporation that Jenyx could acquire a first-time ownership stake in. Make only two selections, one in each column.
Exino
Green Valley
Jenyx
Megac
Naturo
Direct Ownership Relationships (as stated):
Applying the transitivity rule systematically:
Megac owns:
Jenyx owns:
Sysinc owns:
Green Valley owns:
Exino owns:
We need to find corporations that:
The key constraint states: "if Corporation A has an ownership stake in Corporation B, then Corporation B cannot have an ownership stake in Corporation A."
This means:
For Megac:
For Jenyx:
Why these acquisitions are valid:
Step-by-step recap:
Final Answer:
Key Insight: The anti-circularity rule prevents ownership loops but allows multiple paths to the same corporation. Both proposed acquisitions create additional paths to already-owned corporations without creating prohibited cycles.
Exam Strategy: In ownership/hierarchy problems, always map the complete transitive closure first, then check constraints systematically rather than testing combinations randomly.