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What indicates an investors ability to significantly influence the decisionmaking process of an investee? Why (or why not) does the equity method make logical sense?

What indicates an investors ability to significantly influence the decisionmaking process of an investee?

Why (or why not) does the equity method make logical sense?

What exactly is due diligence? How does it apply to acquisitions? How do we know that we have done our due diligence?

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