The ability of an investor to affect the operating and financial activities of another company, even though the investor does not control the company, is known as
A) significant influence.
B) control.
C) a combination.
D) influence and control.

Question

Quizplus · Accepted Answer

Significant influence refers to the power to participate in the financial and operating policy decisions of the investee but not control them. This typically occurs when an investor holds 20% to 50% of the voting power of the investee.

The Ability of an Investor to Affect the Operating and Financial