Which of the Following Is/are True Regarding Minority, Active Investments

question 36

Multiple Choice

Which of the following is/are true regarding minority, active investments?

• A)An investor acquires common shares of an investee with the intent of exerting significant influence over the investee's activities, perhaps through representation on the investee's board of directors.
• B)An investor can exert significant influence over an investee with ownership of less than a majority of the voting stock, because many different individuals or entities own most publicly held corporations, and those owners typically do not collaborate in voting their shares.
• C)U.S.GAAP and IFRS view investments of between 20% and 50% of the voting stock of another company as minority, active investments unless evidence indicates that the investor cannot exert significant influence.
• D)Minority, active investments appear as noncurrent assets on the balance sheet.
• E)all of the above

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