With Regards to New Technology and Information Devices

question 3

Multiple Choice

With regards to new technology and information devices:

• A)they offer considerable benefits to clients with no risk.
• B)they offer considerable risk to clients and no benefits
• C)they offer some risk but also a number of potential benefits
• D)they have been outlawed in most states.

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Definitions:

Consolidated Sales

The total sales of a parent company and its subsidiaries, after eliminating intercompany sales, reported in the consolidated financial statements.

Normal Markup

The standard amount or percentage added to the cost of a product to determine its selling price.

Common Stock

Equity securities that represent ownership in a company, providing voting rights and a share in the company’s profits through dividends.

Equity Method

A method of accounting for investments, where the investor recognizes its share of investee's profits and losses in its own income statement, typically used when the investor has significant influence over the investee.