When Determining Whether Independence Is Impaired Because of an Ownership

question 27

Multiple Choice

When determining whether independence is impaired because of an ownership interest in a client company, materiality will affect ownership

• A) in all circumstances.
• B) only for direct ownership.
• C) only for indirect ownership.
• D) under no circumstances.

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Definitions:

Trust-Busting

Government activities aimed at breaking up monopolies and trusts to restore competition in the market.

World War

A large-scale war involving many countries from different parts of the world, notably occurring twice in the 20th century (World War I and World War II).

Sherman Antitrust Act

U.S. legislation passed in 1890 aimed at promoting fair competition for the benefit of consumers, by prohibiting monopolies and other activities that restrict trade.

Monopolize

The action or condition where a single company or entity gains exclusive control over a market, commodity, or service, often hindering competition.