Expropriation of Minority Shareholders Means That Minority Shareholders

question 19

Multiple Choice

Expropriation of minority shareholders means that minority shareholders

• A) must sell their shares upon demand.
• B) cannot own shares in foreign firms.
• C) do not receive dividends.
• D) are adversely affected by the actions of controlling shareholders.

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Definitions:

Carrying Value

The book value of an asset or liability on a company's balance sheet, calculated as the original cost minus any depreciation, amortization, or impairment costs.

Effective Interest Method

A method of calculating the amortized cost of a financial asset or liability and allocating the interest income or expense over the relevant period.

Interest Rate

The percentage charged on a loan or paid on deposits over a specific period, usually expressed as an annual percentage of the principal.

Amortization Assumption

The accounting practice of gradually writing off the initial cost of an intangible asset over its useful life.