Advanced Accounting - Standalone book
Advanced Accounting - Standalone book
12th Edition
ISBN: 9780077862220
Author: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Publisher: McGraw-Hill Education
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Chapter 1, Problem 2P

Which of the following does not indicate an investor company’s ability to significantly influence an investee?

  a.    Material intra-entity transactions.

  b.    The investor owns 30 percent of the investee but another owner holds the remaining 70 percent.

  c.    Interchange of personnel.

  d.    Technological dependency.

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Which of the following does not indicate an investor company’s ability to significantly influence an investee? Material intra-entity transactions. The investor owns 30 percent of the investee but another owner holds the remaining 70 percent. Interchange of personnel. Technological dependency.
Which of the following does not indicate an investor company's ability to significance an investee?       A. Technological dependency       B. Material intra-entity transactions        C. Interchange of personnel        D. The investor owns 30 percent of the investee but another owner holds the remaining 70 percent
Which one of the following is the least likely reason a company may acquire an ownership interest in another company? Select one: a.To benefit form an overvaluing of assets in the investee company b. To oust an inefficient management team c. To take advantage of operating and/or cost synergies d. To exercise an active role in the business' activities
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