When a Parent Company Owns Less Than 50% of a Subsidiary

question 85

True/False

When a parent company owns less than 50% of a subsidiary company, the companies must prepare consolidated financial statements.

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Definitions:

Rate of Return

The increase or decrease in the value of an investment during a particular time frame, presented as a percentage of the investment’s original price.

Private Saving

The portion of individuals' or households' income that is not used for consumption or paying taxes, typically used for investment or future spending.

Government Budget

A financial statement presenting the government's projected revenue and expenditure for a specific period.

National Saving

The total amount of savings generated within a country, which includes both private savings by households and businesses, and public savings from government budgets.