Asked by Morgan McCord on Jun 16, 2024
Verified
When the ownership percentage of stock exceeds 20 percent but is less than 50 percent,GAAP presumes that the investor
A) has no influence to exert over the investee company.
B) is only investing for a short term trading position.
C) is able to exert influence over the investee company.
D) is trying to take over the investee company.
Ownership Percentage
The fraction of a company's shares owned by a particular shareholder, representing their portion of control and claim on assets.
GAAP
Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in any given jurisdiction, particularly in the United States.
Exert Influence
To exert influence means to use power, authority, or persuasion to affect or direct others' actions, decisions, or opinions.
- Determine the elements that play a critical role in exerting considerable influence over an investee.
Verified Answer
Learning Objectives
- Determine the elements that play a critical role in exerting considerable influence over an investee.
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