Question
An enterprise in which the investor has significant influence is called........
a.
Fellow subsidiaries
b.
Associated companies
c.
Related company
d.
Equity method
a.
Fellow subsidiaries
b.
Associated companies
c.
Related company
d.
Equity method
Answers
GPT-4o
b. Associated companies
An enterprise in which the investor has significant influence is called an "associated company." This typically means the investor holds a significant but not controlling interest, often defined as owning 20% to 50% of the company's voting shares.
An enterprise in which the investor has significant influence is called an "associated company." This typically means the investor holds a significant but not controlling interest, often defined as owning 20% to 50% of the company's voting shares.