According to IAS 27, How Can Effective Control Be Achieved

question 27

Multiple Choice

According to IAS 27, how can effective control be achieved without owning more than 50% of another company's voting shares?

• A)Representation on the company's board of directors
• B)Being the primary entity exercising voting rights
• C)Through a contract between the entities
• D)All of the above may result in control by one corporation over another.

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Definitions:

Tariff Duties

Taxes imposed by a government on imported or exported goods to protect domestic industries or generate revenue.

Coastal States

Regions located along the coastline, often characterized by their unique economic, cultural, and environmental aspects due to proximity to the ocean.

Empress of China

A historical reference to the first American ship to trade with China, setting sail in 1784 and marking the beginning of Sino-American trade relations.

Directly with Asia

Involves engaging, interacting, or conducting activities without intermediaries in countries within the continent of Asia.