In the Absence of Other Evidence,common Stock Ownership of 20

question 34

Essay

In the absence of other evidence,common stock ownership of 20 percent or more is viewed as indicating that the investor is able to exercise significant influence over the investee.What are some of the other factors that could constitute evidence of the ability to exercise significant influence?

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Definitions:

Arbitrary

Based on random choice or personal whim, rather than any reason or system.

Mandate Retail Prices

The enforcement of fixed prices for goods and services that retailers must adhere to, often set by manufacturers or regulatory bodies.

Franchisee

An individual or company that is granted the right by a franchisor to run a business under the franchisor's trademark or brand.

Goods

Tangible items that are manufactured or produced for sale and consumption.