How Can Owning a Minority Interest in Another Firm Benefit

question 44

Multiple Choice

How can owning a minority interest in another firm benefit the firm that owns the minority interest.

• A)Owning a minority interest in a firm does not cost as much as acquiring a controlling interest,but the minority interest gives the firm owning a minority interest some input into the operation of the firm in which it owns a minority interest.
• B)Owning a minority interest in a firm gives the firm owning the minority interest the first right of refusal to increase its ownership to a controlling interest.
• C)Owning a minority interest in a firm gives the firm owning the minority interest the opportunity to control the election of directors and thereby control the firm.
• D)Owning a minority interest in a firm gives the firm owning the minority interest enough control to merge with any firm other than the firm owning a minority interest.

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Definitions:

Major Organic Product

In an organic chemistry reaction, the principal product that is synthesized in the most significant quantity.

Benzene

A basic and important aromatic hydrocarbon with a ring structure that consists of six carbon atoms with alternating double and single bonds.

Bromination

The chemical reaction in which a bromine atom or molecule is introduced into another molecule.

Major Organic Product

The primary outcome of a chemical reaction involving organic reactants; it is usually the most abundant product formed.