Which statement is not correct about "associates"?
A)Holding 18% of the voting power of the investee may mean significant influence exists.
B)The ability to exercise significant influence over the investee mitigates moral hazard.
C)The ability to exercise significant influence over the investee mitigates adverse selection.
D)Significant influence is presumed if 51% of the voting power of the investee is held.

Question

Quizplus · Accepted Answer

Significant influence is not presumed if 51% of the voting power of the investee is held. Rather, control is presumed in this case. Significant influence can be achieved with a lower percentage of voting power, such as 18% as mentioned in choice A.

Which Statement Is Not Correct About "Associates