Question

Which of the following statements are correct?
Associate company, in relation to another company, means a company in which that other company has a significant influence. The expression “significant influence” in this context means: -
(i) Control of business decisions under an agreement.
(ii) Control of at least twenty-five per cent of total voting power.
(iii) Participation in business decisions under an agreement.
(iv) Control of at least twenty per cent of total voting power.

• A. Only (i), (ii), and (iii)
• B. Only (ii), (iii), and (iv)
• C. Only (i), (ii), and (iv)
• D. Only (i), (iii), and (iv)

Hint:

An Associate Company is different from a Joint Venture.
The threshold for significant influence is 20% of the voting power.
Always verify if the question mentions 20% or 25% to avoid common traps.

Answer 1

The Correct Option is D