The Equity Method of Accounting for a Stock Investment Should

question 29

Multiple Choice

The equity method of accounting for a stock investment should generally be used when the investor owns 20%-50% of the investee's stock, because that level of stock ownership:

• A) means the investor has a controlling interest in the investee company
• B) gives the investor significant influence over the investee company
• C) requires the investor to notify the government of any plans to acquire a controlling interest in the investee company
• D) usually indicates a plan to acquire a controlling interest of the investee company

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Northwest Europe

A geographic region comprising the northwestern countries of Europe, often including the United Kingdom, Ireland, the Low Countries, Scandinavia, and sometimes parts of France and Germany.

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Individuals who move to a different country from their country of origin, typically for reasons such as employment, better living conditions, or escape from conflict.

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Restrictive American Laws

Laws in the United States that limit certain behaviors, actions, or freedoms.