Townsend Ltd. Has the Following Shareholders: Palermo Co.-60

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:

Plasma Proteins

Plasma proteins are a diverse group of proteins found in blood plasma, playing crucial roles in blood clotting, immune response, and transport of substances.

Albumin

A protein found in blood plasma, responsible for maintaining the osmotic pressure needed for proper distribution of body fluids.

Platelets

Small, disk-shaped cell fragments in the blood that are critical for blood clotting and wound healing.

Initiate Clotting

The process of starting the cascade of events that leads to the formation of a blood clot, which helps stop bleeding.