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Tree Corporation Bought Shares of Leaf Ltd

Question 15

Multiple Choice

Tree Corporation bought shares of Leaf Ltd.in order to earn a return on some excess cash it had on hand.Tree Corporation is not involved in any way in the decision-making of Leaf Ltd.What level of influence must Tree Corporation have over Leaf Ltd.?


A) Control
B) Significant influence
C) Passive investment
D) Active investment

Correct Answer:

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