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:

Long-Term Relationships

Connections or associations between parties, characterized by durability, ongoing interaction, and sustained mutual interest or benefit.

Learning Organization

An entity that supports the education of its community while constantly evolving to improve its adaptability and success.

Training Needs

The gap between current performance and desired performance that can be closed by specific training and development interventions.

Sharing Information

The act of exchanging data, knowledge, or insights among individuals, teams, or organizations to facilitate decision-making and problem-solving.