The Holding of 20% or More of the Voting Power

question 13

Multiple Choice

The holding of 20% or more of the voting power in an investee entity by an investor is a presumptive test that the investee is an associate of the investor.The application of this presumptive test means that:

• A) where an investor acquires a 20% equity stakeholding in an investee, the investee is an associate of the investor.
• B) where an investor acquires a 20% equity stakeholding in an investee, in the absence of evidence to the contrary, the investor has significant influence over the investee.
• C) an investor must have an equity stakeholding in an investee of at least 20% before the investee can be treated as an associate of the investor.
• D) none of the above.

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Definitions:

Popliteal Region

The area located at the back of the knee joint.

Knee

The knee is a complex hinge joint connecting the thigh with the lower leg, encompassing bones, ligaments, tendons, and cartilage for movement and stability.

Abdominopelvic Cavity

A body cavity that consists of the abdominal cavity (holding the stomach, liver, and other organs) and the pelvic cavity (holding the reproductive organs, bladder, and rectum).

Parietal Peritoneum

is the part of the peritoneum that lines the abdominal wall, as opposed to the visceral peritoneum that covers abdominal organs.