If A has significant influence over B but does not have any share ownership in B:
A) B is an associate of A.
B) B is not an associate of A.
C) B is a subsidiary of A.
D) none of the above.

Question

Quizplus · Accepted Answer

An associate is defined as an entity in which an investor has significant influence but does not control or own a majority of the voting rights. As A does not have any share ownership in B, it cannot be considered an associate of A. Therefore, the correct answer is B.

If a Has Significant Influence Over B but Does Not