alleryStart learning →Which stake carries rights like electing directors and setting management pay?
AControlling interest
BMarketable minority interest
CNon-marketable minority stake
DPreference share holding
Answer & Solution
Correct answer: A. Controlling interest
An interest above 50 percent confers control prerogatives such as electing directors and declaring dividends.
Keep practising Business Valuation
Browse all Business Valuation questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
How is marketability of a business interest defined?A controlling interest is defined as an investor acquiring more than what share of a compaWhich level of value is lowest for equity interests in a private firm?A buyer pays a 100% control premium over the minority price. What is the implied minority A private firm valued using listed-peer multiples is usually adjusted for what?In the guideline public company method, the comparison with listed firms is expressed as wWhy is the asset-based approach weak for a going concern?Why do some critics doubt the objectivity of the WACC method?