When an Investor Has Significant Influence but Not Control Over

question 30

True/False

When an investor has significant influence but not control over an investee, the investee is referred to as an associate.

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Definitions:

Microloans

Small loans offered to people with little to no credit history or collateral, typically aimed at enabling entrepreneurship or self-employment in developing countries.

Collateral

Assets pledged by a borrower to secure a loan or other credit, and subject to seizure in the event of default.

Social Venture Capitals

Investment funds that provide capital to businesses making a positive impact on social issues, focusing on both financial returns and social outcomes.

Triple Bottom Line

An accounting framework that incorporates three dimensions of performance: social, environmental, and financial.