Asked by Kayla Harrington on Jun 11, 2024
Verified
Minority ownership occurs when a corporate investor owns less than which of the following percentages of the stock of another company?
A) 20%
B) 30%
C) 40%
D) 50%
Minority Ownership
A holding of less than 50% of the voting shares in a company, which does not provide control over the company's operations.
Corporate Investor
An entity, typically a company, that invests its resources in other companies, either to gain strategic advantages or financial returns.
- Comprehend the principle behind a noncontrolling (minority) interest in a subsidiary.
Verified Answer
EH
Emily HurleyJun 14, 2024
Final Answer :
D
Explanation :
Minority ownership is defined as owning less than 50% of a company's stock, which means the investor does not have control over the company's operations or decisions.
Learning Objectives
- Comprehend the principle behind a noncontrolling (minority) interest in a subsidiary.