Indicia of an investor's incapacity to exert significant influence over the policy-making decisions of an investee include:

Question

Quizplus · Accepted Answer

All of the options listed indicate that the investor does not have significant control or influence over the investee. Option A suggests that a small group of non-investor shareholders have majority control, meaning the investor's voting power is limited. Option B states that the investor attempted to gain board representation, which would have given them some level of control over decision-making, but failed to do so. Option C highlights the investor's inability to access financial information necessary to determine their stake in the investee's net assets or earnings, further indicating a lack of control. Therefore, all of these options suggest an investor's incapacity to exert significant influence over the policy-making decisions of an investee.

Indicia of an Investor's Incapacity to Exert Significant Influence Over