If a company has control over the financial policies of another entity,it is deemed to have control over the operating policies.

Question

Quizplus · Accepted Answer

Having control over the financial policies of another entity does not necessarily mean a company has control over the operating policies. Control over financial policies might relate to financial decisions, investments, and funding, while control over operating policies involves decisions on the entity's day-to-day operations, strategies, and management practices. These are distinct areas of governance.

If a Company Has Control Over the Financial Policies of Another