Which of the Following Is NOT Required for an Investor

question 56

Multiple Choice

Which of the following is NOT required for an investor to have control over an investee?

• A) The investor must have power over the investee.
• B) The investor must have exposure to variable returns from the investment.
• C) The investor must be able to use its power to affect the amount of its returns.
• D) The investor must currently own a majority of the voting shares of the investee.

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Definitions:

Control

In experimental settings, a standard condition against which the effects of a variable are compared.

Chromatin

Colored material; the genetic material in the nucleus.

Chromosomes

Structures within cells that contain DNA and gene information crucial for the development, function, and reproduction of all living organisms.

Nucleus

The membrane-bound organelle in a eukaryotic cell that contains the chromosomes and controls the cell's growth and reproduction.