If an Investor Owns Less Than 20% of the Common

question 123

Multiple Choice

If an investor owns less than 20% of the common stock of another corporation as a long-term investment

• A) the equity method of accounting for the investment should be employed.
• B) no dividends can be expected.
• C) it is presumed that the investor has relatively little influence on the investee.
• D) it is presumed that the investor has significant influence on the investee.

---

Definitions:

Scatterplot

A type of plot or graphical representation displaying values for typically two variables for a set of data.

Blood Pressure

Blood pressure is the force exerted by circulating blood on the walls of the body's arteries, a critical metric in diagnosing heart health.

Linear Relationships

A relationship between two variables where the change in one variable is directly proportional to the change in another.

Nonlinear Relationships

Nonlinear relationships describe scenarios in data where the change in outcome variable does not correspond to a constant change in predictor variable.