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For What Reason Would a Company Buy 10% of the Common

Question 185

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For what reason would a company buy 10% of the common stock of a second company?


A) The company has idle cash and wishes to have a higher return than that available from temporary money market investments.
B) The company wishes to ensure a steady source of goods from the second company.
C) The company wishes to prepare consolidated financial statements.
D) None of these are correct.

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