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.
E) All of the given answers.

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 two key factors that determine significant influence. The ability to dominate decision-making may also indicate significant influence, but it is not always necessary. Therefore, options A and B individually are not the best choices. Option E includes all answers, but not all of them are necessary to indicate significant influence. Option D includes the two most important factors, making it the best choice.

Tests to Indicate Whether Significant Influence Exits Include