90. Identify five different reasons a company might invest in the shares of another company, and discuss what type of investment would be required to achieve each reason. 91. For each of the...

90. Identify five different reasons a company might invest in the shares of another company, and discuss what type of investment would be required to achieve each reason.

91. For each of the following investments state what type of investment it is and how it would likely be accounted for.


A) Own 28,000 of 50,000 voting shares of a private company.
B) Bought 15,000 of 50,000 voting shares of a private company from a disgruntled partner. One person owns all the remaining shares. To date have been unable to get any representation on the board of directors.
C) Own 1,000 shares of the Toronto Dominion Bank, a large public company. Because they have a good record for dividend payments, management intends to hold the shares for a long time.
D) Own 5,000 of a public company as part of an investment portfolio managed to earn income.
E) Own 33% of the shares of a private company with two other equal partners.
F) Own 20% of the shares but control 80% of the votes of a large public company.