Which of the Following Statements Is Incorrect in Regards to Non-Controlling

question 26

Multiple Choice

Which of the following statements is incorrect in regards to non-controlling interests in subsidiaries?

• A) A non-controlling interest is defined as equity in a subsidiary not attributable, directly or indirectly, to a parent.
• B) Under the entity concept, if subsidiaries are partly owned by the parent entity, both the parent entity and the non-controlling interests will have an ownership interest in the subsidiary's profits, dividend payments, and share capital and reserves.
• C) Under the entity concept, non-controlling interests will be shown as a liability.
• D) Under the proprietary concept, non-controlling interests will be shown as a liability.
• E) None of the given answers.

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Definitions:

Informal Elements

Components within an organization that are not officially documented or structured but contribute to the culture, such as norms, behaviors, and unwritten rules.

Organizational Development

A field of research, theory, and practice dedicated to expanding the knowledge and effectiveness of people to accomplish more successful organizational change and performance.

Informal Organization

The unofficial and less visible part of the system.

Organization

An entity comprising multiple people, such as an institution or an association, that has a particular purpose.