Examples of rights that determine the existence of power include:
A) rights to appoint, reassign or remove members of an investee's key management personnel
B) rights to appoint or remove another entity that participates in management decisions.
C) rights to direct the investee to enter into, or veto any changes to, transactions that affect the investee's returns.
D) all of the options are correct.

Question

Quizplus · Accepted Answer

All of the options correctly describe rights that determine the existence of power. By having the ability to appoint, reassign or remove key management personnel or other entities participating in management decisions or to direct the investee to enter into or veto certain transactions, the investor has significant influence over the investee and as a result, has the power to make important decisions that affect the investee's returns.

Examples of Rights That Determine the Existence of Power Include