All of the following are types of intercorporate investments in capital stock except:
A) minority, passive
B) minority, active
C) majority, active
D) majority, passive

Question

Quizplus · Accepted Answer

All the other options are valid types of intercorporate investments in capital stock. Minority, passive investments occur when one company owns less than 50% of another company's stock and does not have significant control over its operations. Minority, active investments occur when one company owns less than 50% of another company's stock but has significant control over its operations. Majority, active investments occur when one company owns more than 50% of another company's stock and has significant control over its operations. However, there is no such thing as a majority, passive investment, as owning a majority stake in another company implies having significant control over its operations.

All of the Following Are Types of Intercorporate Investments in Capital