A Non-Controlling Interest Arises Only When a Parent Company Purchases

question 16

Multiple Choice

A non-controlling interest arises only when a parent company purchases:

• A) more than 50% but less than 100% of the stock of a subsidiary company
• B) between 20% and 50% of the stock of a subsidiary company
• C) less than 20% of the stock of a subsidiary company
• D) all of the stock of a subsidiary company

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Definitions:

Impression Management

The process by which individuals attempt to control the perceptions others have of them, through the manipulation of information in social interactions.

Organizational Politics

The process and behavior in human interactions involving power and authority, used to gain advantage within an organization.

Power

The ability or capacity to influence or control the behavior of others, often backed by authority or force.

Potential

The inherent ability or capacity for growth, development, or coming into being.