A controlling interest is normally one where the investor:

Question

Quizplus · Accepted Answer

A controlling interest is typically achieved when an investor owns more than 50% of the voting stock of the investee, allowing them to control the decision-making processes of the company. Therefore, option B is the correct answer. Option A, owning more than 20% of the voting stock, may provide some level of influence, but it does not usually confer control. Options C and D refer to accounting methods and are not relevant to determining controlling interest.

A Controlling Interest Is Normally One Where the Investor