A subsidiary:
A) is excluded from consolidation because the investor is a venture capital organisation.
B) is not excluded from consolidation simply because the investor is a venture capital organisation.
C) is excluded from consolidation because its business activities are dissimilar from those of other entities within the group.
D) is not excluded from consolidation simply because the investor only has significant influence, and not control, over it.
E) is excluded from consolidation because the investor has no Board representation in the subsidiary.

Question

Quizplus · Accepted Answer

A subsidiary is not excluded from consolidation simply because the investor is a venture capital organization. Consolidation depends on the level of control the investor has over the subsidiary, regardless of their type of organization.

A Subsidiary