Which of the Following Statements Is Incorrect

question 14

Multiple Choice

Which of the following statements is incorrect?

• A) Significant influence requires the investor to have the power or capacity to participate in the investee's financial and operating policy decision.
• B) The key criterion for identifying a joint arrangement is that the joint venturers have joint control over the joint venture.
• C) Significant influence requires the investor to actually exercise its power over the investee.
• D) The assessment of the existence of significant influence requires judgement on the part of the accountants.

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Definitions:

Cartels

An association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition.

Non-Unionized Industries

Sectors of the economy where labor unions do not represent the workforce, often resulting in different labor standards and wages.

Minimum Wage

The lowest hourly, daily, or monthly remuneration that employers may legally pay to workers.

Structural Unemployment

Unemployment caused by changes in the industrial makeup of an economy or technological innovations that render certain job skills obsolete.