Final answer:
In this scenario, ownership percentage does not always determine the ability to exercise significant influence.
Step-by-step explanation:
In this scenario, if the ownership percentage is less than 20% but the ability to exercise significant influence exists, it means that even though the ownership stake is small, the individual or entity has the power to make important decisions and impact the operations and direction of the company. It is important to note that ownership percentage does not always directly correlate to the ability to exercise influence.
For example, let's say a person owns only 10% of a company's shares, but they are a key advisor or have a strong network and connections. In this case, they may be able to sway the decision-making process and have a significant influence on the company's operations.
So, in summary, ownership percentage does not necessarily determine the ability to exercise significant influence. It is possible to have a low ownership percentage and still have the power to impact the company's decisions and activities.