Townsend Ltd.has the Following Shareholders

question 27

Multiple Choice

Townsend Ltd.has the following shareholders:
Palermo Co.- 60%
Nix Ltd.- 30%
Riley Ltd.- 10%
Nix does not conduct any business with Townsend,nor has it been able to secure a seat on the Board of Directors.Which of the following statements is true?

• A)Nix has significant influence over Townsend.
• B)Nix should consider Townsend to be a special purpose entity.
• C)Nix should consider Townsend to be an associated company.
• D)Nix should treat Townsend as a non-strategic investment.

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Definitions:

Ethical Sensitivity

The capability to recognize and respond to ethical issues and dilemmas that arise in various situations.

MARS Model

A framework identifying four critical factors—Motivation, Ability, Role Perceptions, and Situational factors—that determine an individual's work performance.

Schwartz's Model

A theory of human values that identifies ten broad motivational types of values, showing how they are related and influence individual behavior.

Distributive Justice

Refers to perceptions of fairness in the allocation of resources and outcomes within social and organizational contexts.