Strategic investments that occur when the investor can significantly influence the strategic operating,investing,and/or financing policies of the investee are called

Question

Quizplus · Accepted Answer

Investments in associates refer to strategic investments where the investor has significant influence over the investee's strategic operating, investing, and financing policies. Joint arrangements refer to situations where two or more parties have joint control over an investee, while business combinations refer to situations where one entity takes control over another entity. Non-strategic investments in bonds refer to investments in debt securities where the investor does not have significant influence over the issuer. Proportionate investment refers to investments where the investor's share in the investee is proportional to their ownership percentage.

Strategic Investments That Occur When the Investor Can Significantly Influence