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.

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Definitions:

CPT Code

A five-digit numerical code assigned to every task and service a medical practitioner may provide to a patient including medical, surgical, and diagnostic services.

Cystostomy

Cystostomy is a surgical procedure to create an opening in the urinary bladder for urine to exit the body when normal urination is not possible.

Surgery Section

A specialized department within a hospital where surgical operations are carried out.

NEC

An abbreviation for "Not Elsewhere Classified," used in coding systems to indicate items that do not fit into existing categories.