Under IAS 27, How Is "Control" Defined

question 45

Multiple Choice

Under IAS 27, how is "control" defined?

• A)Ownership of 50% of more of the voting shares of another entity
• B)Representation on another entity's board of directors
• C)The power to govern financial and operating policies of an entity so as to obtain the benefits from its activities
• D)Ownership of 30% or more of the voting shares of another entity

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Definitions:

Labor Supply

The total hours that workers are willing and able to work at a given wage rate in a specific period.

Capital

Financial assets or their financial value, as well as the tangible factors of production that are used in creating goods or services.

Maximize Profit

The process of increasing one's financial gain to the highest possible level given the constraints of the market.

Productivity

The efficiency with which input resources are converted into output, often measured as the ratio of output to input over a specific period.