Which Statement Is Not Correct About "Control

question 55

Multiple Choice

Which statement is not correct about "control"?

• A)Control is presumed when an entity has more than 50% of the voting power of the investee.
• B)Having control allows the entity to direct the strategic operations of the investee.
• C)Control is presumed when an entity owns more than 50% of the investee.
• D)Consolidation is used when an entity has control over the investee.

---

Definitions:

Valve Body

A critical component in an automatic transmission that controls the flow of hydraulic fluid, which in turn controls gear shifting and operation.

Differential Fluid

The lubricant used in a vehicle's differential to cool and reduce friction among the gears within.

Clutch System

Refers to the components that engage and disengage the engine's power transmission to the gearbox in a vehicle.

PCM

Powertrain Control Module, an automotive component that manages various aspects of an engine's operation, including the fuel mixture, ignition timing, and emissions control.