When an Investor Owns Less Than 20 Percent of the Investee

question 82

Multiple Choice

When an investor owns less than 20 percent of the investee company,the investor may still be able to exert influence over the investee company if the other stock is

• A)closely held by a few investors.
• B)widely distributed across a few investors.
• C)widely distributed across a large number of individual investors.
• D)controlled a small group of investors.

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Definitions:

Autonomic Nervous System

The part of the nervous system that controls involuntary bodily functions, including heart rate, digestion, and respiratory rate.

Parasympathetic Nervous System

Part of the autonomic nervous system that conserves energy by slowing the heart rate, increasing intestinal and gland activity, and relaxing sphincter muscles in the gastrointestinal tract.

Primary Appraisals

The initial evaluation process where an individual assesses the significance and potential impact of an event as stressful, positive, controllable, or irrelevant.

Secondary Appraisals

The evaluative process in which individuals assess their ability to cope with or manage the consequences of a potentially stressful or threatening event.