Equity Securities in Which the Investor Owns Less Than 20

question 37

Multiple Choice

Equity securities in which the investor owns less than 20% ownership in the voting stock of the investee can be ________.

• A)significant interest investments
• B)controlling interest investments
• C)held-to-maturity investments
• D)either trading investments or available-for-sale investments

---

Definitions:

Influence

The ability to influence the personality, growth, or actions of an individual or an entity.

Formal Hierarchy

An organizational structure where each position and its authority relative to others is clearly outlined, establishing a clear chain of command.

Authority

The legitimate power granted to individuals or groups, typically within an organizational structure, to make decisions and enforce rules.

Connection Power

The influence gained from networking or building relationships with influential individuals or groups.