What is an "associate"?
A)An entity where unanimous consent over decisions is required by the owners.
B)An entity where the investor can exercise unilateral control over the decisions of the investee.
C)An entity where the investor has the ability to participate in decisions affecting the investee.
D)An entity that cannot sell shares to the public or issue debt in the marketplace.

Question

Quizplus · Accepted Answer

An "associate" is an entity where the investor has the ability to participate in decisions affecting the investee, but does not exercise unilateral control over the investee's decisions. In other words, the investor has significant influence over the investee's operations and financial policies, but does not have controlling power over them.

What Is an "Associate