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:

Society's Welfare

The overall well-being and quality of life of a community or society, often considered in terms of health, happiness, and prosperity.

Efficiency

The degree to which resources are utilized effectively to achieve a goal with minimum waste of time and effort.

Government

The governing body of a nation, state, or community which creates and enforces laws, manages public resources, and regulates societal functions.

Government Intervention

Actions taken by a government to affect or interfere with market activities or uphold laws for economic or social outcomes.