In accounting, a 30% interest in the stock of another company is what?
Question:
a) an insignificant investment
b) a controlling investment
c) a short-term investment
d) a significant investment
Answer:
D... and with D comes a little bit of B...
I would say d.
For b, you would generally control over 50% of the shares. for you to have a controlling interest with fewer shares, you'd need to know additional information, which would then help you decide if the interest is a controlling interest or not.
Could be either C or D. If it is long term then D would apply. If the investment is for short term, then C would apply.
More Questions & Answers...