When deciding whether or not control exists over one entity by another entity:
A) the controlling entity must have exercised its power to control;
B) it is sufficient that the controlling entity has the capacity to control;
C) the controlling entity must be actively involved in governing the operations of the other entity;
D) it is necessary that the controlling entity has exerted its control over the financing policies of the other entity.

Question

Quizplus · Accepted Answer

Control exists when an entity has the capacity to control, not necessarily requiring the actual exercise of power, active involvement, or exertion over specific policies.

When Deciding Whether or Not Control Exists Over One Entity