Which of the Following Is/are True Regarding Minority, Passive Investments

question 86

Multiple Choice

Which of the following is/are true regarding minority, passive investments?

• A)An investor acquires the common stock of another entity for the interest, dividends, and capital gains anticipated from share ownership.
• B)The acquiring company's ownership percentage is sufficiently small that it cannot control or exert significant influence over the other company.
• C)U.S.GAAP and IFRS view investments of less than 20% of the voting shares of another company as minority, passive investments in most cases.
• D)An investor who intends to hold the shares for less than a year would classify them as current assets; if the expected holding period is longer, the investor would classify them as noncurrent assets.
• E)all of the above

---

Definitions:

Daily Functioning

The ability to perform normal daily tasks and activities, including work, social interactions, and self-care.

Seatmate

A person who is assigned to sit next to another person, often in a classroom or on a vehicle.

Eating Disorders

Mental disorders characterized by abnormal or disturbed eating habits, which significantly impact a person's health and daily functioning.

Psychopathology

The study of mental disorders and abnormal behaviors, including their symptoms, etiology, and treatment.