In Order to Be Most Effective, When Should a Commitment

question 52

Multiple Choice

In order to be most effective, when should a commitment response be made?

• A) Before the SSR becomes imminent
• B) After the SSR becomes imminent
• C) When a person is subjected to a strong temptation
• D) When a person is tired

---

Definitions:

Significant Influence

Refers to the capacity of an investor to affect the financial and operating policies of an investee through ownership, without having complete control.

Common Stock

A type of equity ownership in a corporation, representing a claim on a portion of its profits and assets.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, but not control those policies, typically associated with owning a significant but not majority share of the investee.

Fair Value

The price that would be received for the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.