A controlling ownership(more than 50% voting rights), however, does not necessarily mean that the entity has the power to govern the combined entity’s financial and operating policies so as to obtain benefits from its activities.
I came across this sentence in my Kaplan exam kit. And i find this slightly at odds with my understanding of control. If an entity has more than 50% voting rights than should not it straightway means that it has CONTROL over all financial and operating policy decisions of the entity?
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implications of controlling ownership
Have you posted this to the wrong forum? Group audits are not examinable in AA.
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