alleryStart learning →Apart from voting power, control can be exercised through what?
AControl of board composition
BHolding of preference shares
CLending to the enterprise
DSupplying raw materials
Answer & Solution
Correct answer: A. Control of board composition
Controlling the composition of the board so as to obtain economic benefits is the second route to control.
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Related questions
An enterprise controlled by another enterprise is called a what?Consolidated financial statements present a group as what?An enterprise is NOT an associate if it is what?A 40% held associate revalues assets with a surplus of Rs 2,00,000. Adjustment to carryingA 30% associate sold goods to the investor at Rs 50,000 profit, still unsold. Elimination?A Rs 4,00,000 investment has an equity carrying amount of Rs 4,50,000 when influence ends.Unrecognised loss share is Rs 30,000. The investor's share of the next profit is Rs 50,000Rs 8,00,000 buys 40% of an associate with net assets of Rs 15,00,000. What is the goodwill