All of the following factors would be signs of an investor's significant influence over an investee except
A) the investor has representation on the investee's board of directors.
B) the investor participates in the investee's policy-making process.
C) there are immaterial transactions between the investor and the investee.
D) the common stock held by other stockholders is dispersed.

Question

Quizplus · Accepted Answer

Immaterial transactions between the investor and the investee do not necessarily indicate significant influence. The other factors, such as representation on the board of directors and participation in policy-making, suggest that the investor has the ability to influence the investee's decisions and operations. The dispersion of common stock held by other stockholders does not necessarily have a bearing on the investor's influence.

All of the Following Factors Would Be Signs of an Investor's