Which of the Following Is an Example of Screening

question 181

Multiple Choice

Which of the following is an example of screening?

• A)a man buys an expensive birthday present for his girlfriend
• B)an insurance company offers a policy with a high deductible
• C)the seller of a used motorcycle knows more about its true condition than a prospective buyer
• D)society supports long prison terms for corporate criminals

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Definitions:

Consolidated Net Income

The total profit of a parent company and its subsidiaries after taxes and interest, combined into one financial statement.

Controlling Interest

An ownership interest in a business entity sufficient to provide the power to direct its policies and management.

Book Value

The net value of a company's assets minus its liabilities, often used to assess a company's financial health on its balance sheet.

Partial Equity Method

An accounting approach where an investor recognizes investment income only to the extent that dividends are received from the investee, differing from the full equity method.