If a Company Acquires a 40% Interest in Another Company

question 43

Multiple Choice

If a company acquires a 40% interest in another company

• A)the equity method is usually applicable.
• B)it would always have a controlling interest.
• C)the fair value model is usually applicable.
• D)the investor does not have the ability to exert significant influence over the investee.

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Definitions:

Prefrontal Cortex

The part of the frontal lobes of the brain located at the front, important for decision making, social behavior, and personality expression.

Antisocial Personality Disorder

Antisocial Personality Disorder is a mental health condition characterized by a long-term pattern of manipulating, exploiting, or violating the rights of others.

Amygdala

A section of the brain that is responsible for detecting fear and preparing for emergency events.

Conduct Disorder

A pattern of disruptive and violent behaviors typically observed in children and adolescents, including rule-breaking, aggression, and disregard for others.