Which Statement Is Not Correct About "Associates

question 37

Multiple Choice

Which statement is not correct about "associates"?

• A)Holding 18% of the voting power of the investee may mean significant influence exists.
• B)The ability to exercise significant influence over the investee mitigates moral hazard.
• C)The ability to exercise significant influence over the investee mitigates adverse selection.
• D)Significant influence is not presumed if 20% of the voting power of the investee is held.

---

Definitions:

Hearing

The physiological process and perception of sound by the ears and brain, including the ability to perceive and interpret auditory information.

Melanoma

A type of skin cancer that develops from the pigment-producing melanocytes, often characterized by the uncontrolled growth of pigment cells.

Anterior Skin

The front surface of the skin, particularly referring to the aspect that faces forward or is most visible in standard anatomical position.

Posterior Skin

The skin located on the back side of the body, covering areas from the back of the head to the heels.