Which of the following is an indicator of power to influence financial and operating policy of an investee?
A)Representation on the board of directors
B)Participation in the policy making process
C)Material transactions between investor and investee
D)Interchange of managerial personnel
E)All of the above

Question

Quizplus · Accepted Answer

All of the above are indicators of power to influence financial and operating policy of an investee. Representation on the board of directors allows the investor to participate in strategic decision-making, participation in the policy-making process enables the investor to influence the investee's financial and operating policies, material transactions between investor and investee provide the investor with leverage to influence the investee's actions, and interchange of managerial personnel allows the investor to exert influence over the investee's day-to-day operations.

Which of the Following Is an Indicator of Power to Influence