An entity over which the investor has significant influence and is neither a subsidiary nor an interest in a joint venture is known as a/an:

Question

Quizplus · Accepted Answer

An entity over which the investor has significant influence but is neither a subsidiary nor an interest in a joint venture is known as an associate. A partner is typically an entity in a partnership agreement, a parent is a company that owns more than 50% of the voting rights in another company and a subsidiary is a company that is controlled by another company with more than 50% of the voting rights. Thus, option D (associate) is the correct answer in this context.

An Entity Over Which the Investor Has Significant Influence and Is