Which of the Following Is Not an Indicator of Significant

question 42

Multiple Choice

Which of the following is not an indicator of significant influence?

• A)The investor has representation on the investee's board of directors.
• B)There are material transactions between the investor and the investee.
• C)The investor and the investee share office space and use the same accounting firm.
• D)The investor provides computing services to the investee.

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Definitions:

Excessive Paperwork

Refers to an overly large amount of written documents, forms, and reports required or generated, often leading to inefficiency and productivity loss within an organization.

Bureaucracy

An organizational structure characterized by hierarchical authority, formal rules, and a focus on procedure.

Impersonality

A characteristic of systems or processes where decisions and actions are based on objective criteria, rather than on personal relationships or biases.

Organizations as Communities

A concept that views organizations as social entities built on patterns of relationships, shared values, and cultural practices.