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Commerce · Q1291

Accounting

Graduate and Post Graduate · Commerce · question 1291

Q1291

If an entity owns directly or indirectly more than 50% of voting rights, control is presumed unless clearly proven that it is not control. Sometimes control exists, even if there is less than 50% of voting rightes exist. State which of the followings is/are example(s) of control even if voting power is less than 50%

A.
Power to govern financial and operating policies under statute
B.
Power to remove/appoint majority members of BOD that controls the entity
C.
Power to cost majority of votes at meetings of BOD that controls the entity
D.
All of the above
Answer

Answer: Option D

Solution

Answer: Option D
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