An entity in which an investor has significant influence is known as a/an:

A) associate.
B) subsidiary.
C) related party.
D) joint venture.

Question

An entity in which an investor has significant influence is known as a/an:A)  associate.B)  subsidiary.C)  related party.D)  joint venture.

Bethany Fosque · Accepted Answer

Final Answer : A, Explanation :  An investor is said to have significant influence over an entity when it has the ability to participate in the financial and operating policy decisions of the investee, but is not in control. An associate is an entity in which the investor has significant influence, but does not have control or joint control over its financial and operating policies. Subsidiaries, on the other hand, are entities that are controlled by the investor, while related parties are typically entities with which the investor has a close relationship, such as family members or business partners. Joint ventures involve joint control and are not necessarily indicative of significant influence on the part of the investor.

An entity in which an investor has significant influence is known as a/an:

A) associate.
B) subsidiary.
C) related party.
D) joint venture.

Definitions

Learning Objectives

Learning Objectives

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