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 the six qualitative factors an investor should consider? Cite the source for your answer.
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Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th Edition
111919167X, 9781119191674
