When a Company Invests in Equity Securities with 20% or More

question 60

True/False

When a company invests in equity securities with 20% or more, but less than 50%, ownership in the investee's voting stock, the investor can significantly influence the investee's decisions.

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Definitions:

Expressed in Plain Language

Written or spoken communication in simple, straightforward language that can be easily understood by the target audience, without the use of technical or legal jargon.

Acceptance May Consist

Acceptance in a contract can take various forms, including actions or performance in line with the contract's terms.

Valid and Enforceable

Legally binding and capable of being executed or implemented under the law.

Voluntary Consent

Knowing and voluntary agreement to the terms of a contract. If voluntary consent is lacking, the contract will be voidable.