Question: The equity method tends to be most appropriate if a. An investment represents 50 percent or more of the voting stock of an investee. b.

The equity method tends to be most appropriate if

a. An investment represents 50 percent or more of the voting stock of an investee.

b. An investment enables the investor to influence the operating and financial decisions of the investee.

c. Majority ownership of the investee is concentrated among a small group of shareholders who operate the investee without regard to the views of the investor.

d. The investor is unable to obtain representation on the investee’s board of directors

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