The power to participate in the financial and operating policy decisions of an entity is known as:
A) control.
B) joint control.
C) share ownership.
D) significant influence.

Question

Quizplus · Accepted Answer

Control is defined as having the power to participate in the financial and operating policy decisions of an entity. Joint control is when two or more parties have the power to control an entity. Share ownership simply means owning shares of an entity, which may or may not give the shareholder control. Significant influence is the power to participate in the financial and operating policy decisions of an entity, but to a lesser extent than control. Therefore, the correct answer is A) control.

The Power to Participate in the Financial and Operating Policy