Q139
In order to have controlling interest in a foreign company
A.
an investor must have at least 100 % interest in the foreign company
B.
an investor must have at least 50% interest in the foreign company
C.
an investor may hold a minority stake if the remaining ownership is widely dispersed
AnswerD.
an investor must make all decisions at headquarters about the foreign company
Answer: Option C
Solution
Answer: Option C
Solution:
In order to have controlling interest in a foreign company an investor may hold a minority stake if the remaining ownership is widely dispersed. Working control is a situation wherein a minority shareholder or shareholders have enough voting power to influence or determine corporate policy.