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How Can Owning a Minority Interest in Another Firm Benefit

Question 20

Multiple Choice

How can owning a minority interest in another firm benefit the firm that owns the minority interest.


A) Owning a minority interest in a firm does not cost as much as acquiring a controlling interest,but the minority interest gives the firm owning a minority interest some input into the operation of the firm in which it owns a minority interest.
B) Owning a minority interest in a firm gives the firm owning the minority interest the first right of refusal to increase its ownership to a controlling interest.
C) Owning a minority interest in a firm gives the firm owning the minority interest the opportunity to control the election of directors and thereby control the firm.
D) Owning a minority interest in a firm gives the firm owning the minority interest enough control to merge with any firm other than the firm owning a minority interest.

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