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:

Steps

A series of actions or stages taken in order to achieve a particular end.

Adaptive

Refers to the ability of an organism to adjust and change its behavior, structure, or physiology to become more suited to its environment.

Abundance

The great quantity or amount of something in a given area or volume.

Pathogens

Microorganisms or agents that can cause disease, including viruses, bacteria, fungi, and parasites.