Which of the Following Is Closest to IAS 27 Definition

question 52

Multiple Choice

Which of the following is closest to IAS 27 definition of control?

• A) A company is deemed to have control over another only when it owns a majority of the voting shares of another company.
• B) A company is deemed to have control when it can elect a majority of the Board members of another company.
• C) Control is the power of one company to govern the financial and operating policies of an entity so as to obtain the benefits of its activities.
• D) Control exists only when a company has the continuing power to determine the operating and financing policies of another company and attempts to exercise such powers.

---

Definitions:

Stamp Act

A British law passed in 1765 imposing a tax on all paper documents in the American colonies, which sparked widespread protests and was a major grievance leading up to the American Revolution.

Virginia Assembly

The legislative body of the Colony of Virginia, established in the 17th century, and a precedent for democratic governance in the English colonies.

British Army

The principal land warfare force of the United Kingdom, responsible for protecting the country and supporting international peacekeeping efforts.

Stamp Act Congress

was a meeting held in 1765 in New York City, consisting of representatives from several of the British colonies in North America; it was the first gathering of elected representatives to devise a unified protest against new British taxation.