If One Company Owns More Than 50% of the Common

question 44

Multiple Choice

If one company owns more than 50% of the common stock of another company,

• A) a partnership exists
• B) a parent-subsidiary relationship exists
• C) the company whose stock is owned must be liquidated
• D) the cost method should be used to account for the investment

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Definitions:

Negotiation Consultant

A professional advisor who helps individuals or organizations to effectively negotiate agreements and resolve disputes.

Repeated Game

A strategic situation where the same game is played several times, allowing players to adjust their strategies based on previous outcomes.

Consulting Ban

A prohibition or restriction on offering consulting services, which can be set by industry regulators, institutions, or governments.

Nash Equilibrium

A concept in game theory where no player can gain by changing their strategy while the other players keep theirs unchanged.