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Small businesses have many options when they choose to go global, but it is not a good idea for such firms to establish a sales or production facility abroad because of the resources this requires.
Consolidated Statement of Retained Earnings
A financial statement that shows the changes in a corporation's retained earnings over a specific period, combining the retained earnings of the parent company with those of its subsidiaries.
FVE Method
Refers to the Fair Value Evaluation method, a technique for assessing an asset's worth at its current market value.
Consolidated Net Income
The total amount of net income earned by a parent company and its subsidiaries, after intercompany transactions have been eliminated.
Equity Method
An accounting technique used by a company to record its investment in another company where it has significant influence but not full control, usually through the ownership of 20-50% of the voting stock.
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