If an investor owns between 20% and 50% of an investee's common stock it is presumed that the investor has significant influence on the investee.

Question

Quizplus · Accepted Answer

According to accounting standards, ownership of 20% to 50% of an investee's common stock is considered to be significant influence, which means the investor has the ability to participate in the investee's financial and operating policy decisions.

If an Investor Owns Between 20% and 50% of an Investee's