When an investor owns more than 50% of the voting shares of an investee,the investee is referred to as a(n):

Question

Quizplus · Accepted Answer

According to accounting standards, when an investor owns more than 50% of the voting shares of an investee, the investor has control over the investee. In this case, the investee is considered a subsidiary of the investor. The subsidiary will be consolidated with the parent company's financial statements. Therefore, option A is the correct answer. options B and C are not accurate descriptions of the relationship between the investor and the investee, while option D refers to the consolidated financial statements, which is a result of owning a subsidiary, not the term used for the investee itself.

When an Investor Owns More Than 50% of the Voting