Which of the Following Statements Is Incorrect

question 3

Multiple Choice

Which of the following statements is incorrect?

• A)a parent can never have control of a subsidiary with less than 50% ownership of the subsidiary
• B)a parent may have control of a subsidiary with less than 50% ownership of the subsidiary
• C)the non- controlling interest in a subsidiary is the group of shareholders who own shares that the parent company does not own
• D)the portion of the equity of a subsidiary not owned by a parent is known as the non- controlling interest

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Definitions:

Demand Requirements

The quantity of products or services that the market requires at any given time.

Transportation Model

A mathematical model used to plan and optimize the transportation of goods from several sources to several destinations, minimizing the cost of transportation.

Linear Programming

An optimization method for achieving the best outcome in a mathematical model whose requirements are represented by linear relationships.

Holding Costs

Expenses associated with storing inventory over a certain period, including warehousing, insurance, depreciation, and opportunity costs, among others.