4a) Where the investor (the entity which acquired the shareholding in another entity) exercises some form of control over the investee, the investor is the parent of the investee, which is called its subsidiary. In terms of IFRS 3 Business combinations which is the correct option regarding control: (i) A parent may control an investee (subsidiary) regardless of the percentage interest held by the investor in that investee. (ii) An investor controls an investee when it has power over the investee (iii) An investor has power over an investee when it has existing rights that give it the current ability to direct the relevant activities of the investee. (iv) An investor has power over an investee when it has e exposure (or rights) to variable returns through its relationship with the investee (v)An investee may be controlled by more than one investor at any given time. Select one: a. (i), (iii) & (iv) b. (ii) & (iii)

c. (i), (ii), (iii) & (iv)

d. (i), (ii), (iii) & (v)

4b)

A Limited acquired 30% of the ordinary shares of B Limited. B Limited has 80% of the ordinary shares of C Limited. C Limited has 65% of the ordinary shares of D limited. A limited and D limited have joint control of E Limited and each has 50% in E Limited. What is the relationship between A Limited and B Limited?

Select one:

a. No relationship

b. Investor-joint venture

c. Parent-subsidiary

d. Investor-associate