How is control generally defined in terms of an investee?

The concept of control in relation to an investee primarily revolves around the notion of power and the ability to affect the returns of the investee. Control is defined as the power to govern the financial and operating policies of an entity to obtain benefits from its activities. This means that an entity can make decisions that influence the overall strategy and performance of the investee, which in turn impacts the financial returns.

The correct choice encapsulates this definition by emphasizing both the power over the investee and the resultant effects on returns. This aligns with the International Financial Reporting Standards (IFRS), particularly IFRS 10, which establishes the criteria for determining control. Control can exist even when ownership is below 50%, as long as the entity has the ability to direct relevant activities and impact outcomes.

Other options, while related to aspects of control, do not capture the comprehensive view as effectively. The notion of simply having a greater than 50% ownership does not take into account situations where control may exist despite lower direct ownership. Similarly, having the ability to make decisions independently or having significant shareholdings may imply some level of influence but does not necessarily equate to control as defined formally in accounting standards.