Asked by
Alexis Liles
on Nov 18, 2024
Verified
It is not possible for one company to influence the operating policies of another company unless it owns more than 50% interest in that company.
50% Interest
A financial or ownership stake in an entity or asset, where the holder owns or is entitled to one-half of the interest in the subject matter.
- Apply the equity method for investments where the investor has significant influence over the investee.
Verified Answer
RW
Learning Objectives
- Apply the equity method for investments where the investor has significant influence over the investee.