An entity in which an investor has significant influence is known as:
A) a joint venture;
B) a related party;
C) a subsidiary;
D) an associate.

Question

Quizplus · Accepted Answer

An associate is an entity in which an investor has significant influence but does not have control or ownership of more than 50% of the voting rights. Joint ventures are entities created through a partnership or collaboration between two or more parties, related parties are entities that have a close relationship with the investor, and subsidiaries are entities that the investor has control over (ownership of more than 50% of the voting rights).

An Entity in Which an Investor Has Significant Influence Is