The Two Business Entities Involved in an Investment in Securities

question 106

Multiple Choice

The two business entities involved in an investment in securities with controlling influence,for which consolidated financial statements are prepared,are known as:

• A)Parent and Investor
• B)Subsidiary and Investee
• C)Consolidator and Parent
• D)Parent and Subsidiary
• E)Both are referred to as partners.

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Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, which reflects the value of all goods and services produced by an economy in a given year in base-year prices.

Price Level

The average price point of the entirety of goods and services in the economic scope.

Personal Consumption Expenditures

Refers to the value of goods and services purchased by households for the purpose of consumption.

Gross Private Domestic Investment

The total amount of money spent on investment in physical assets (such as buildings and machinery) by the private sector.