An Investor Who Owns 15% of an Entity's Voting Shares

question 11

Multiple Choice

An investor who owns 15% of an entity's voting shares can

• A) potentially have influence over the investee if the shares are widely held.
• B) always be assumed to have little or no influence over the investee.
• C) be assumed to be using the cost model.
• D) be assumed to always use the equity method.

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Definitions:

Associations

The company one keeps, as in family, friends, and other role models who help shape one’s life; important determinants of individual character.

Self-Concept

An individual's understanding of who they are based on their beliefs, characteristics, and values.

Heteronomy

The condition of being influenced, controlled, or governed by external forces or other people, as opposed to autonomy.