If an entity owns directly or indirectly more than 50% of voting rights, control is presumed unless clearly proven that it is not control. Sometimes control exists, even if there is less than 50% of voting rightes exist. State which of the followings is/are example(s) of control even if voting power is less than 50%

The correct answer is D. All of the above.

Control is the power to direct the management and policies of an entity so as to obtain benefits from its activities. Control can be exercised through ownership of voting rights, by contract, or by other means.

If an entity owns directly or indirectly more than 50% of voting rights, control is presumed unless clearly proven that it is not control. However, control can also exist even if there is less than 50% of voting rights. This can happen if an entity has the power to govern financial and operating policies under statute, to remove/appoint majority members of the board of directors that controls the entity, or to cast a majority of votes at meetings of the board of directors that controls the entity.

In some cases, control may be shared by two or more entities. This can happen if no single entity has the power to direct the management and policies of the entity, but two or more entities have the power to block decisions that are important to the entity.

Control is important because it determines who has the power to make decisions about an entity and who benefits from its activities. Control can also affect the accounting treatment of an entity’s financial statements.