Firms Sometimes Invest in the Common Stock of Other Entities

Multiple Choice

Firms sometimes invest in the common stock of other entities in order to exert significant influence or control over the other entity.U.S.GAAP and IFRS assume that firms owning between _____ of the voting stock of another entity can exert significant influence.

A) 10% and 40%
B) 15% and 45%
C) 20% and 50%
D) 25% and 55%
E) 30% and 60%