If an Investor Owns Less Than 20% of the Common

Multiple Choice

If an investor owns less than 20% of the common stock of another corporation as an investment

A) the equity method of accounting for the investment should be employed.
B) no dividends can be expected.
C) it is presumed that the investor has relatively little influence on the investee.
D) it is presumed that the investor has significant influence on the investee.