If a Firm Consolidates Subsidiaries That Are Not Wholly Owned,an

question 14

Multiple Choice

If a firm consolidates subsidiaries that are not wholly owned,an income statement item is created that is termed:

• A)dividend income.
• B)minority share of earnings.
• C)equity income.
• D)extraordinary.
• E)gain from sale of subsidiary.

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Definitions:

No Shirking Constraint

An economic principle suggesting that wages must be set at a level that discourages employees from shirking their duties.

Supply of Labor Curve

A graphical representation showing the relationship between the wage rate and the quantity of labor that workers are willing to supply.

Efficiency Wage

Efficiency wage is a theory suggesting employers pay a wage higher than the market equilibrium to increase worker productivity and loyalty.

Efficiency Wage

A theory suggesting that higher wages can lead to increased productivity by attracting better workers and reducing turnover.