Match the Following Terms to Their Correct Definition

question 91

Multiple Choice

Match the following terms to their correct definition:
-Situation where the investor owns over 50% of the outstanding common stock and is therefore deemed to own the investee

• A)equity security
• B)debt security
• C)passive
• D)significant influence
• E)control
• F)parent
• G)subsidiary
• H)trading securities
• I)available-for-sale securities
• J)held-to-maturity securities
• K)amortized cost method
• L)fair value method
• M)unrealized gains and losses
• N)equity method
• O)consolidation worksheet
• P)minority interest
• Q)business combination
• R)goodwill

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Definitions:

American Bar Association

A large voluntary association of attorneys and law students in the United States which aims to improve the legal profession, set academic standards for law schools, and formulate ethical codes for the legal profession.

Interstate Commerce

Economic activity that involves trade, traffic, or transportation across state lines, falling under the regulatory power of the federal government.

Foreign Corporation

A company that is incorporated in one country but conducts business operations in another country where it is considered foreign.

International Shoe

A foundational legal case in personal jurisdiction law within the United States, establishing the "minimum contacts" standard.