A Company May Purchase a Noncontrolling Interest in Another Firm

question 106

Multiple Choice

A company may purchase a noncontrolling interest in another firm in a related industry

• A) to house excess cash until needed.
• B) to generate earnings.
• C) for strategic reasons.
• D) for speculative reasons.

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Definitions:

Prohibited Grounds

Areas or reasons for discrimination that are not permissible by law, such as race, gender, age, or religion.

Strategic Assets

Valuable resources or capabilities that give an organization a competitive edge in its industry or market.

High Performance Aspirations

The strong desire or ambition to achieve excellence and superior outcomes in tasks or goals.

Top Priority

The highest level of importance assigned to a task or objective, often requiring immediate attention or action.