The question is asking about the role or perception of an investor in a related company except for one specific scenario. The correct choice should identify the incorrect statement about the investor's role.
Given the options:
a. Exercise significant influence in matters relating to dividends, commercial and financial policy
b. Hold the interest on a long-term basis.
c. Hold a qualifying capital interest in the body corporate.
d. Exercise material influence in matters relating to dividends, commercial and financial policy
Both "significant influence" and "material influence" are recognized terms in financial reporting and corporate governance, often used interchangeably.
However, looking closely:
- Option (a) and option (d) essentially mean the same thing but use "significant" and "material" interchangeably.
- Option (b) is about holding interest long-term, which is generally true for related companies.
- Option (c) involves holding a qualifying capital interest, which is also a typical situation for related companies.
Since the terms "significant" and "material" are often used interchangeably and may cause confusion, the statement marking a clear, typical role would be:
d. Exercise material influence in matters relating to dividends, commercial and financial policy
The other choices are typical and expected norms for an investor’s role in a related company. Therefore, the answer is:
d. Exercise material influence in matters relating to dividends, commercial and financial policy
In a related company, the investor is deemed to......except
a.
Exercise significant influence in matter relating to dividends, commercial and financial policy
b.
Hold the interest on a long term basis.
c.
Hold a qualifying capital interest in the body corporate.
d.
Exercise material influence in matter relating to dividends, commercial and financial policy
1 answer