Question

Which of the following does not indicate an investor company's ability to significantly influence an investee? Select one: A. The investor owns 30% while another investor owns 70% B. Material inter-company transactions C. Interchange of personnel D. Technological dependency

Answer 1

Answer:

The correct option is "A"

Explanation:

The pre-dominant confirmations would incorporate;  

• The restriction by the investee to the speculator's impact confirm by the claims or protests to administrative specialists.  
• An understanding is marked by the speculator to give up the noteworthy investor rights.  
• A gathering of investors have a larger part proprietorship, who exercise impact over the tasks of the investee regardless of the perspectives on the investor.  
• A portrayal structure the investee's governing body can't be gotten by the financial specialist.  

In the event that the speculator claims 30 percent of the democratic supplies of investee and other individual holds 70 percent of the democratic stocks, at that point it can't be said that the financial specialist (30 percent) has the capacity of essentially impact in investee.