If a Company Acquires a 40% Ordinary Share Interest in Another

question 192

Multiple Choice

If a company acquires a 40% ordinary share interest in another company,

• A) the equity method is usually applicable.
• B) all influence is classified as controlling.
• C) the cost method is usually applicable.
• D) the ability to exert significant influence over the activities of the investee does not exist.

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Definitions:

Counting

The action of determining the total number of objects in a collection.

Gelman

Refers to the research and contributions of Rochel Gelman, especially regarding cognitive development in children, including concepts of counting and mathematics.

Abstraction

Abstraction in psychology and cognitive science refers to the process of extracting the underlying essence or general patterns from specific examples or experiences.

Counting

The action of finding the number of elements of a finite set of objects.