A Controlling Influence Over the Investee Is Based on the Investor

question 120

Multiple Choice

A controlling influence over the investee is based on the investor owning voting stock exceeding:

• A)10%.
• B)20%.
• C)30%.
• D)40%.
• E)50%.

---

Definitions:

Mechanistic

An organizational structure characterized by rigid hierarchies, clear responsibilities, and centralized decision-making.

Organisational Design

Organisational design is the process of creating structures that best serve a company’s mission and objectives.

Fast Food Franchise

A business model allowing individuals or entities to operate a fast-food outlet of a larger chain, sharing branding, products, and operational guidelines.

Geographical Structures

Geographical structures group together people and jobs performed in the same location.