Tests to indicate whether significant influence exits include:
A) participating in decisions on the distribution or retention of the associate's profits.
B) the ability to dominate the decision making of the board of directors.
C) the extent of ownership interest between the entities.
D) participating in decisions on the distribution or retention of the associate's profits and the extent of ownership interest between the entities.

Question

Quizplus · Accepted Answer

Both participating in decisions on the distribution or retention of the associate's profits and the extent of ownership interest between the entities are important indicators of significant influence. The ability to dominate the decision-making of the board of directors (choice B) is an indicator of control, not significant influence, and is not listed as a choice. Choice A alone is not sufficient enough to determine significant influence.

Tests to Indicate Whether Significant Influence Exits Include