When the ownership percentage of stock exceeds 20 percent but is less than 50 percent,GAAP presumes that the investor

Question

Quizplus · Accepted Answer

When an investor's ownership percentage of stock is between 20% and 50%, GAAP presumes that the investor has the ability to exert influence over the investee company. This presumption is based on the fact that the investor has a significant ownership stake in the company, which provides the investor with the ability to influence the company's decisions and operations. Therefore, choice C is the correct option.

When the Ownership Percentage of Stock Exceeds 20 Percent but Is