A company may purchase a noncontrolling interest in another firm in a related industry

A) to house excess cash until needed.
B) to generate earnings.
C) for strategic reasons.
D) for speculative reasons.

Noncontrolling Interest

An ownership position in a corporation in which the shareholder does not have sufficient voting power to enact changes or control the company’s operations.

Strategic Reasons

The underlying motives or rationales that guide a company's decisions and actions to achieve long-term objectives and competitive advantage.

Speculative Reasons

Motivations for making investments based on the expectation of substantial returns in the future, despite the risk of significant losses.