Townsend Ltd.has the Following Shareholders

Townsend Ltd.has the following shareholders:
Palermo Co.- 60%
Nix Ltd.- 30%
Riley Ltd.- 10%
Nix does not conduct any business with Townsend,nor has it been able to secure a seat on the Board of Directors.Which of the following statements is true?

A) Nix has significant influence over Townsend.
B) Nix should consider Townsend to be a special purpose entity.
C) Nix should consider Townsend to be an associated company.
D) Nix should treat Townsend as a non-strategic investment.