Consolidated Financial Statements Are Appropriate Even Without a Majority Ownership

Multiple Choice

Consolidated financial statements are appropriate even without a majority ownership if which of the following exists:

A) ​the subsidiary has the right to appoint members of the parent company's board of directors.
B) ​the parent company has the right to appoint a majority of the members of the subsidiary's board of directors because other ownership interests are widely dispersed.
C) ​the subsidiary owns a large minority voting interest in the parent company.
D) ​the parent company has an ability to assume the role of general partner in a limited partnership with the approval of the subsidiary's board of directors.