When Is the Equity Method Not Used to Account for Long-Term

question 10

Multiple Choice

When is the equity method not used to account for long-term investments in stocks?

• A) When the investment is 15% and significant influence can be achieved.
• B) When the investment is 30% of the voting stock and significant influence can be achieved.
• C) When the investment is greater than 50% of the voting stock and control is achieved.
• D) When the investment is 40% of the voting stock and significant influence can be achieved.

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Definitions:

Communicates Needs

The process by which individuals express their requirements or desires, typically to ensure they are met.

Heritability Ratios

A statistical estimate that indicates what portion of individual differences in a trait in a population can be attributed to genetic differences.

Social/Economic Status

A measure combining both economic situation, such as income or wealth, and social position, like education and occupation, to classify individuals or groups.

High

A state of elevated mood and energy, often the result of certain stimuli (e.g., drugs, excitement), leading to increased activity and sometimes euphoria.