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When Assessing Whether You Control Another Entity, It Is Important

Question 14

Multiple Choice

When assessing whether you control another entity, it is important to consider "kick-out rights" because although it appears that you control the entity's decisions,


A) You may only own rights to voting shares, rather than the shares themselves.
B) You may be acting as an agent for the real decision makers.
C) You may not make the types of decisions that significantly affect the overall entity's performance.
D) You may own the entity's convertible instruments, rather than its voting shares.

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