When the Ownership Percentage of Voting Stock Exceeds 20 Percent,GAAP

question 45

True/False

When the ownership percentage of voting stock exceeds 20 percent,GAAP presumes that the investor is able to exert significant influence over the investee company.

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Definitions:

Oedipus Complex

A concept in psychoanalytic theory referring to a child's unconscious sexual desire for the opposite-sex parent and jealousy toward the same-sex parent.

Same Sex

Relating to or involving individuals of the same gender.

Moral Guardian

An individual or entity that takes upon themselves the duty of overseeing the moral and ethical development of others, often within the context of community or familial structures.

Ego

Within the framework of psychoanalytic theory, it's the component of the personality that serves as an intermediary among the desires of the id, the superego, and the constraints of reality.