Indicia of an Investor's Incapacity to Exert Significant Influence Over

question 32

Multiple Choice

Indicia of an investor's incapacity to exert significant influence over the policy making decisions of an investee include:

• A) The existence of a small group of "non-investor" shareholders representing the majority of voting power in the investee.
• B) The investor attempting to gain, but not gaining, Board representation.
• C) The investor attempting to gain, but not gaining, the financial information necessary to calculate its equity in the fair value of the investee's net assets at the date of acquisition, or its equity in the post-acquisition earnings of the investee.
• D) All of the above.

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Definitions:

Sporadic Short-term

Characterized by occasional, irregular bouts or occurrences over a brief duration.

Significant Short-term

Pertaining to events or effects that are important or noticeable, but last for a relatively brief period.

Subliminal Messages

Signals or messages embedded in other media, designed to pass below the normal limits of perception.

Cornea

The transparent front part of the eye that covers the iris, pupil, and anterior chamber, contributing most of the eye's focusing power.