Question
In determining whether the equity method should be applied to an investment in common stock, an investor should consider whether it can exercise significant influence.
In determining whether the equity method should be applied to an investment in common stock, an investor should consider whether it can exercise significant influence. Significant influence is characterized by certain quantitative factors (20% ownership) and qualitative factors. What are two of the qualitative factors an investor should consider?
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Personal Finance Building Your Future
Authors: Robert B. Walker, Kristy P. Walker
1st edition
9780077861728, 978-0073530659
