Match the Following Terms to Their Correct Definition

question 15

Multiple Choice

Match the following terms to their correct definition:
-Name given to the investee when an investor owns over 50% of the investee's outstanding common stock

• 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:

Production Function

A mathematical relationship expressing the maximum output that can be produced from a given set of inputs.

Commodity

An elementary good in the business sector that can be interchanged with others of a like kind.

Profit

The financial gain achieved when the amount earned from selling goods or services exceeds the costs associated with production or procurement.

Speeding Ticket

A penalty issued by law enforcement to drivers exceeding the legal speed limit.