If an investor owns between 20% and 50% of an investee's voting stock, it is assumed that the investor has significant influence on the investee.

Name: If an investor owns between 20% and 50% of an investee's voting stock, it is assumed that the investor has significant influence on the investee.
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Question

Quizplus · Accepted Answer

According to accounting standards, ownership of between 20% and 50% of an investee's voting stock indicates significant influence and requires the use of the equity method of accounting.

If an Investor Owns Between 20% and 50% of an Investee's