When an investor owns 20% to 50% of the voting shares of an investee and has significant influence,the investee is referred to as a(n):

Question

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When an investor owns 20% to 50% of the voting shares of an investee and has significant influence, the investee is referred to as an affiliated company. This means that the investor has the ability to participate in the financial and operating policy decisions of the investee, but does not have full control over them.

When an Investor Owns 20% to 50% of the Voting