Describe the Process That Occurs as a Rumour Circulates

question 39

Essay

Describe the process that occurs as a rumour circulates. Be sure to define what a rumour is to begin your answer and use examples to explain your points.

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Definitions:

Issued Capital

refers to the total value of a company's shares that have been sold and are held by shareholders.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders, often reinvested into the company.

Investment Elimination Entry

An accounting entry made in the process of consolidating financial statements to remove the effects of intercompany investments and avoid double counting.

Subsidiary Asset

An asset owned by a subsidiary company, which itself is controlled by a parent company through ownership of more than half of its voting stock.