Signiﬁcant inﬂuence over the operating and ﬁnancial policies of another company may be indicated by the following except:
A) participation on its board of directors.
B) participation in its policy-making process.
C) evidence of material transactions between the two companies.
D) have signiﬁcant inﬂuence only on income earned by the other company. 13.

Question

Quizplus · Accepted Answer

Significant influence over another company typically involves participation in decision-making processes, such as being on the board of directors or being involved in policy-making. It is not solely determined by having influence on the income earned by the other company, as significant influence encompasses broader aspects of control and influence over operational and financial policies.

Signiﬁcant Inﬂuence Over the Operating and ﬁNancial Policies of Another