Investment in AssociateTest 1Date:Score:Name:Section:Write your final answer before the number. Use CAPITAL letters only. Erasures, changing offinal answer, and the like will be considered wrong.1. It is an entity over which the investor has significant influence.a. Associateb. Investeec. Venture capital-organizationd. Mutual fund2. Which of the following statements best describe the term significant influence?a. The holding of a significant proportion of the share capital in another entityb. The contractually agreed sharing of control over an economic entityc. The power to participate in the financial and operating policy decisions of an entityd. The mutual sharing in the risks and benefits of a combined entity3. Which of the following statements is true concerning significant influence?I.If an investor holds, directly or indirectly, less than 20% of the voting power ofthe investee, it is presumed that the investor does not have significant influence,unless such influence can be clearly demonstrated.II.If an investor holds, directly or indirectly, 20% or more of the voting power ofthe investee, it is presumed that the investor does have significant influence,unless it can be clearly demonstrated that this is not the case.III.A substantial or majority ownership by another investor does not necessarilypreclude an investor from having significant influence.a.b.c.d.I, II and IIII and II onlyIII onlyII only4. Which of the following st … Purchase document to see full attachment
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