Significant influence over the operating and financial policies of another company may be indicated by the following except:

Question

Quizplus · Accepted Answer

Significant influence over the operating and financial policies of another company may be indicated by evidence of material transactions between the two companies, participation on its board of directors, and participation in its policy-making process. However, having significant influence only on income earned by the other company is not necessarily an indication of overall significant control over its policies.

Significant Influence Over the Operating and Financial Policies of Another