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

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