The Ability of an Investing Company to Affect the Operating

question 47

Multiple Choice

The ability of an investing company to affect the operating and financial activities of another company, even though the investor holds less than 50% of the stock, is known as

• A) significant influence.
• B) control.
• C) a combination.
• D) influence and control.

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Definitions:

Self-monitoring

The act of observing and regulating one’s own behavior in social situations to fit into the surrounding environment or achieve a personal goal.

Need for Closure

The desire to find an answer or to come to a decision quickly in order to alleviate uncertainty and ambiguity.

Ambiguity

The presence of uncertainty or vagueness in meaning in expressions or situations.

Need for Cognition

A psychological tendency to engage in and enjoy effortful cognitive activities.