Which of the Following Is Closest to IFRS 3 Business

question 6

Multiple Choice

Which of the following is closest to IFRS 3 Business Combinations 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.

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Definitions:

Insight Learning

A form of learning characterized by an individual suddenly realizing how to solve a problem without trial-and-error, often involving understanding the underlying principles.

Latent Learning

Latent learning refers to knowledge that is acquired without immediate evidence of any change in behavior, which is revealed under certain conditions.

Learned Helplessness

A condition marked by an individual's struggle with feeling incapable, stemming from experiencing trauma or constant unsuccessful attempts.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, through which associations are made between a behavior and the consequences for that behavior.