With consolidation, control generally occurs when the investor owns what percentage of the voting stock of the investee?

Question

Quizplus · Accepted Answer

Control is generally considered to exist when an investor owns over 50% of the voting stock of the investee. This is because the investor has the ability to direct the actions of the investee and make decisions that significantly impact its operations. Therefore, if an investor owns over 50% of the voting stock, they have the power to determine the direction of the investee and consolidate its financial statements.

With Consolidation, Control Generally Occurs When the Investor Owns What