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A Minority Discount Is the Reduction in the Value of a Minority

question 17

True/False

A minority discount is the reduction in the value of a minority investor's investment because minority owners have little influence in how the firm is managed.


Definitions:

Go To Trial

The process in which a legal case is presented before a judge or jury in a court of law to resolve a dispute between parties through examination of evidence and application of legal principles.

Joint Legal Custody

A legal arrangement where both parents share the responsibility and authority to make decisions concerning their child's upbringing.

Major Decisions

Significant rulings or conclusions made by an authoritative body or individual that have a considerable impact.

Inter Vivos Trust

A trust created by the grantor, settlor, and effective during the grantor’s lifetime – that is, a trust not established by a will.

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