When an Investor Owns Between 20% and 50% of the Ordinary

question 184

Essay

When an investor owns between 20% and 50% of the ordinary shares of a corporation, it is generally presumed that the investor has _______________ influence over the investee and therefore, the appropriate method of accounting for this type of investment is the _______________ method.

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Definitions:

Variable-ratio

A schedule of reinforcement where a response is rewarded after an unpredictable number of responses, commonly used in behavior modification techniques.

Fixed-ratio

A schedule of reinforcement where a response is rewarded only after a specified number of responses, commonly used in behavior analysis.

Positive Reinforcement

In behaviorism, a method of increasing the likelihood of a behavior by following it with a desirable event or outcome.

Negative Reinforcement

A method in behavior psychology that strengthens a behavior by removing an unpleasant stimulus when the behavior occurs.