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Indicators for significant influence over equity investee Which of the following factors is an indicator that an investor company has significant influence over LO 1
Indicators for significant influence over equity investee Which of the following factors is an indicator that an investor company has significant influence over
LO
an investee company?
a The investor tries and fails to obtain representation on the investee's board of directors.
b Majority ownership of the investee is concentrated among a small group of shareholders who operate the investee without regard to the views of the investor.
c The investee has technological dependency on the investor.
d The investor and investee sign an agreement under which the investor surrenders significant rights.
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