Significant influence of one company over another has been defined by the accounting profession as the ownership of what minimum percent of the second company's stock?
A)20%
B)50%
C)100%
D)30%

Question

Quizplus · Accepted Answer

Significant influence is generally indicated by the ownership of 20% or more of the voting stock of another company. This level of ownership suggests that the investor has the ability to exert influence over the financial and operating policies of the investee.

Significant Influence of One Company Over Another Has Been Defined