Consolidated Financial Statements Are Prepared When a Company Owns _________

question 15

Multiple Choice

Consolidated financial statements are prepared when a company owns _________ of the ordinary shares of another company.

• A) less than 20%
• B) between 20% and 50%
• C) less than 50%
• D) more than 50%

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Definitions:

Self-Fulfilling Prophecy

A belief or expectation that influences a person to act in ways that cause the belief to become true.

Human Nature

The innate characteristics, including ways of thinking, feeling, and acting, which all human beings share.

Fundamental Attribution Error

A cognitive bias where people are more likely to attribute others' actions to their character or disposition rather than to external factors.

Internal Attributions

The process of ascribing the cause of one's own or others' behaviors and outcomes to internal, personal factors rather than to external or situational factors.