The criterion for determining whether an entity may apply the equity method is the ability to exercise significant influence over the investee. An investor who owns 30% of the voting common stock of the investee is most likely to exercise significant influence when The investor and investee sign an agreement under which the investor surrenders significant rights. O The investor tries and fails to obtain representation on the investee's board of directors. Opposition by the investee, such as litigation, challenges the investor's exercise of significant influence. O The majority ownership of the investee is spread among a large group of shareholders who have objectives with respect to the investee that differ from those of the investor