If an Investor Owns Less Than 20% of the Common

question 46

Multiple Choice

If an investor owns less than 20% of the common stock of another corporation as an 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:

Hodgepodge

A confused or disorderly mixture of various elements.

Reliability

The consistency of a research study or measuring test over time.

Administration

The organized process of managing and executing psychological assessments, including preparation, execution, and interpretation of results.

Individual Intelligence Tests

Standardized tests designed to measure human intelligence and cognitive abilities on an individual basis.