An investor presumed to have significant influence owns between 20% and 50% of another company's voting stock.

Question

Quizplus · Accepted Answer

According to accounting standards, when an investor owns between 20% and 50% of another company's voting stock, it is presumed that the investor has significant influence over the investee. However, this presumption can be rebutted by evidence that the investor does not have significant influence.

An Investor Presumed to Have Significant Influence Owns Between 20