The Main Evidence of Control for Purposes of Consolidated Financial

question 15

Multiple Choice

The main evidence of control for purposes of consolidated financial statements involves:

• A) possessing majority ownership
• B) having decision-making ability that is not shared with others.
• C) being the sole shareholder
• D) having the parent company and the subsidiary participating in the same industry.

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Definitions:

Mergers and Acquisitions

Business activities where companies are consolidated or purchased to expand operations or enter new markets.

Strategic Plans

Long-term action plans designed to position an organization for competitive advantage and successful achievement of its overall goals.

Operational Plans

Detailed plans outlining how the strategic goals of an organization will be achieved through specific actions within a short to medium timeframe.

Facilities Plan

A strategic plan that outlines the physical resources, spaces, and environments necessary for an organization to operate efficiently.