In AASB 3,the Indicia of an Acquiring Entity's Power to Control

question 19

Multiple Choice

In AASB 3,the indicia of an acquiring entity's power to control the other combining entities in a business combination do not include the power to:

• A) exercise more than half of the voting rights in another entity through the site of the voting power or by virtue of an agreement with other investors.
• B) appoint or remove a majority of the members of the governing body of the acquired entities.
• C) cast the majority of votes at meetings of the governing body.
• D) none of the above.

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Definitions:

Physiological State

The condition of the body at a given time, including aspects such as temperature, heart rate, and hormone levels.

Motivational State

The internal condition that activates and directs behavior towards achieving specific goals, influenced by desires, needs, and ambitions.

Homeostasis

The ability of an organism to maintain internal equilibrium by adjusting its physiological processes.

Drive-Reduction Theory

A psychological theory that posits motivation is based on the goal of eliminating uncomfortable internal states caused by unmet needs.