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AnnyKZ [126]
3 years ago
5

When a company acquires a 20% - 50% interest in another company, this generally results in Group of answer choices a controlling

level of influence. a significant level of influence. an insignificant level of influence. a passive level of influence.
Business
1 answer:
Softa [21]3 years ago
6 0

Answer:

A significant level of influence.

Explanation:

Whenever the shares of nay company are being purchased by more than 50%, that gives the purchaser the controlling level of influence on that particular company.

Here in this question the level is between 20% - 50%, which is high and can be termed as significant but not any other term that is present in the options to the question.

Hope this helps you out buddy.

Good luck and Thank You.

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What is confidential information​
dem82 [27]

Answer:

Information that is top secret vip your eyes only

6 0
2 years ago
Read 2 more answers
When conducting a swot analysis, budgets, ratios, and sales reports can be used to identify:?
Amanda [17]
The answer to this question is <span>Company strengths and weaknesses.
In this context, company strength refers to all the factors that make the company stand out among other competitors in the market (such as good products, fame, good researchers, etc)
The weakness, on the other hand, refers to something that needed to be taken care of if the company want to win the competition in the market. (such as huge debt ratio, scandals, etc)

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5 0
3 years ago
If an economy is producing at a point on its production possibilities frontier, it is: a.efficient in production and allocation.
irinina [24]

Answer:

d.efficient in production but not necessarily in allocation.

Explanation:

The production possibility curve portrays the cost of society's choice between two different goods. An economy that operates at the frontier has the highest standard of living it can achieve, as it is producing as much as it can using the same resources. If the amount produced is inside the curve, then all of the resources are not being used.

- all points on the curve are points of maximum productive efficiency

- However, an economy may achieve productive efficiency without necessarily being allocatively efficient. Market failure (such as imperfect competition or externalities) and some institutions of social decision-making (such as government and tradition) may lead to the wrong combination of goods being produced (hence the wrong mix of resources being allocated between producing the two goods) compared to what consumers would prefer, given what is feasible on the PPF.

8 0
3 years ago
Company X has 2 million shares of common stock outstanding at a book value of $2 per share. The stock trades for $3 per share. I
Vera_Pavlovna [14]

Answer:

Correct option is B.

<u> The weight of debt for WACC purposes is 23.08%</u>

Explanation:

Amount of debt = 2 million x 0.90

 = 1.80 million

Amount of equity = 2 million x 3

= 6 million

Weight of debt = amount of debt/ (amount of debt + amount of equity)

  = 1.80 million / ( 6 million + 1.80 million)

  =23.08%

8 0
3 years ago
Company Pea owns 90 percent of Company Essone which in turn owns 80 percent of Company Esstwo. Company Esstwo owns 100 percent o
ankoles [38]

Answer:

Company Pea

Consolidated financial statements should be prepared to report the financial status and results of operations for:

Essone - 90%

Esstwo = 72% (90% x 80%)

Essthree = 72% (90% x 80% x 100%)

Explanation:

Company Pea is described as the holding or parent company of Company Essone.  This means that Essone is Company Pea's subsidiary.  In preparing consolidated financial statements to report the financial status and results of operations for Company Essone, Company Pea will consolidate 100% of Company Essone while accounting for noncontrolling interest of 10% (effectively 90%).

When Company Essone is consolidating its financial statements, it should consolidate 80% of Company Esstwo while Esstwo consolidates 100% of Company Essthree.

But since Essthree is also a subsidiary of Company Pea, Company Pea will consolidate Esstwo and Essthree's financials to the tune of 72% respectively, while consolidating 90% of Essone's.

8 0
2 years ago
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