When a Company Owns More Than 50% of the Common

question 172

Multiple Choice

When a company owns more than 50% of the common stock of another company

• A) affiliated financial statements are prepared.
• B) consolidated financial statements are prepared.
• C) controlling financial statements are prepared.
• D) significant financial statements are prepared.

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Definitions:

Required Return

Required return is the minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project.

Dividends

Funds disbursed by a company to its shareholders, typically originating from the firm's earnings.

Product Life Cycles

Describes the stages a product goes through from introduction to growth, maturity, and decline in the market.

Required Rate Of Return

The minimum annual percentage earned by an investment that will entice individuals or companies to put money into a particular security or project.