Which Statement Is Not Correct About "Control

question 55

Multiple Choice

Which statement is not correct about "control"?

• A)Control is presumed when an entity has more than 50% of the voting power of the investee.
• B)Having control allows the entity to direct the strategic operations of the investee.
• C)Control is presumed when an entity owns more than 50% of the investee.
• D)Consolidation is used when an entity has control over the investee.

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Definitions:

Marginal Utility

The change in satisfaction or utility that a person receives from consuming one additional unit of a good or service.

Total Utility

The total satisfaction or value a consumer receives from consuming a particular quantity of goods or services.

Additional Unit

Refers to the next unit of production or consumption, often analyzed in terms of its cost or benefit.

Utility

Utility is an economic concept referring to the total satisfaction received from consuming a good or service.