In Which of the Following Circumstances Is the Investor Most

Multiple Choice

In which of the following circumstances is the investor most likely to exert significant influence over the operating and financial policies of the investee company?

A) The investor owns 48% of the investee's outstanding nonvoting preferred stock.
B) The investor owns 22% of the investee's outstanding common stock and one other investor owns the other 78%.
C) The investor owns 36% of the investee company's outstanding convertible bonds.
D) The investor owns 19% of the investee's outstanding common stock and has a seat on the investee's board of directors.