A passive investment is one in which the owner
A)is not attempting to exert influence over the company.
B)owns between 15-25% of the company's outstanding stock.
C)uses the equity method of accounting for the investment.
D)is gradually attempting to gain control over the company.

Question

Quizplus · Accepted Answer

A passive investment is one in which the owner is not attempting to exert influence over the company. This means that the owner is simply holding the investment for its potential financial returns and is not involved in the management or decision-making of the company.

A Passive Investment Is One in Which the Owner