How does the % of ownership a company has in an investment effect them? Would the % of ownership be a big factor in your decision whether or not to invest in a company? Please explain.
How does the % of ownership a company has in an investment effect them? Would the % of ownership be a big factor in your decision whether or not to invest in a company? Please explain.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
How does the % of ownership a company has in an investment effect them? Would the % of ownership be a big factor in your decision whether or not to invest in a company? Please explain.
Expert Solution
Step 1
The answer for the question on the ownership of a company has been discussed hereunder :
Companies have been classified based on different points of view.
On the basis of Control/Ownership, companies can be classified into,
1. Holding Companies
2. Subsidiary Companies
3. Government Companies.
On the basis of Public interest, companies can be classified into,
1. Public Companies
2. Private Companies.
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