When Deciding Whether or Not One Entity Controls Another Entity

question 2

Multiple Choice

When deciding whether or not one entity controls another entity:

• A) the controlling entity must be actively involved in the decision making of the other entity.
• B) the controlling entity must have exercised its power to control.
• C) it is sufficient that the controlling entity has the capacity to control.
• D) the controlling entity must have exerted its control over the financing policies of the other entity.

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Definitions:

Economic Policies

Government measures applied to control the economy of a country, including fiscal policy, monetary policy, and trade policy.

National Debt

The total amount of money that a country's government has borrowed, by various means.

Budget Deficit

The financial shortfall when a government's expenditures exceed its revenues within a given fiscal period, leading to borrowing or debt accumulation.

Economic Crises

Periods of significant decline in economic activity spread across the economy, lasting more than a few months, and are normally visible in real GDP, real income, employment, industrial production.