Rank the Following in Order of Increasing Stability

question 49

Multiple Choice

Rank the following in order of increasing stability.

• A)I < II < III < IV
• B)II < I < III < IV
• C)I < II < IV < III
• D)IV < III < II < I

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Definitions:

Corporate Groups

A collection of parent and subsidiary companies that function as a single economic entity through a common source of control.

Indirect Ownership Interests

Ownership in a company that is not held directly by the owner but through a chain of intermediary entities.

Sequential Consolidation Method

A process in accounting where the financial results of subsidiary companies are consolidated with the parent company's financial statements one after another, usually in the order of acquisition.