A Noncontrolling Interest Arises When

question 91

Multiple Choice

A noncontrolling interest arises when:

• A)a parent company excludes the subsidiary company from the consolidated financial statements.
• B)a parent company owns less than 100% of the stock of a subsidiary.
• C)a subsidiary company is not included in the consolidated financial statements.
• D)a subsidiary company represents less than 20% of the value of the consolidated company.

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Definitions:

Attitude Formation

The process by which individuals develop their perspectives, feelings, and beliefs about people, objects, and ideas based on experiences, emotions, and information.

Direct Contact

A situation or method of transmission where physical touch or immediate proximity facilitates the exchange or spread of substances or information.

Vicarious Conditioning

Learning that occurs through observing the behavior and outcomes of others, rather than through direct experience.

Observational Learning

A learning process through which behaviors are acquired by watching and imitating the actions of others.