Which of the Following Is the First Step in Determining

question 41

Multiple Choice

Which of the following is the first step in determining if one company controls another such that a parent/subsidiary relationship exists?

• A)Determine the relevant activities of the investee.
• B)Determine how decisions are made regarding the relevant activities.
• C)Determine whether the investor has the current ability to direct those relevant activities.
• D)Determine the purpose and design of the investee.

---

Definitions:

Procurement

The process of sourcing and acquiring goods and services from external sources for an organization.

E-sourcing

The process of acquiring goods or services for business use through online platforms and electronic negotiations.

E-procurement

Electronic procurement involves the use of online systems and tools to conduct the purchasing process and obtain goods and services.