Question

Per Controlling and Non-controlling interest shares, explain why would a corporation choose one over the other?

Per Controlling and Non-controlling interest shares, explain why would a corporation choose one over the other?

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Answer #1

A non-controlling interest (NCI) is an ownership stake in a corporation, with the investors owning a minority interest and having less influence over how the company is managed. The majority of investor positions are deemed to be NCI, because the ownership stake is so insignificant relative to the total number of outstanding shares. For smaller companies, any ownership position that holds less than 50% of the outstanding voting shares is deemed to be an NCI

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