Question

If the investor purchases more than 50% of the outstanding stock of the investee, the investor is considered to have __________ over the investee.

A. influence
B. significant influence
C. control
D. power

Answer 1

Answer:

C. Control

Explanation:

When an investor has more than 50% stock of a parent company, he is said to have control. Control in these context refers to the power to direct the operative and financial activities of the firm.