The ability of an investing company to affect the operating and financial policies of another company,even though the investor holds less than 50 percent of the voting stock,is known as
A)significant influence.
B)control.
C)minority interest.
D)noninfluential control.

Question

Quizplus · Accepted Answer

Significant influence refers to the power to participate in the operating and financial policies of an investee company, but not to control those policies. This power is often associated with owning between 20% and 50% of the voting stock of the investee company.

The Ability of an Investing Company to Affect the Operating