When an Investor Owns 20% to 50% of the Voting

question 22

Multiple Choice

When an investor owns 20% to 50% of the voting shares of an investee and has significant influence,the investee is referred to as a(n) :

• A) subsidiary
• B) affiliated company
• C) trust
• D) consolidated entity

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Definitions:

Operating Divisions

Parts of a company that focus on the core business functions, often segmented by product line, service area, or geographic location.

Variable Costs

Expenses that change in proportion to the level of activity or volume of production in a business.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, including expenses like rental fees, wages, and insurance payments.

Peak-period Demand

The highest level of demand for a product or service, typically occurring during specific periods due to various factors.