Use Critical Thinking to Address the Key Issue

question 1

Essay

Use critical thinking to address the key issue.
-A questionnaire is sent to 10,000 persons. 5,000 responded to the questionnaire. 3,000 of the respondents say that they "love chocolate ice cream". We conclude that 60% of people love chocolate ice cream. What is wrong with this survey?

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Definitions:

Non-Controlling Interest

A ownership stake in a corporation where the holding gives the investor less than 50% voting power.

Intercompany Profits

Profits derived from transactions between companies within the same group, which may need to be eliminated in consolidated financial statements.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its identifiable net assets; reflects the value of the brand, customer relationships, and reputation.

Parent-Company Extension Method

This method involves the accounting for investments in subsidiaries from the perspective of the parent company, focusing on the extension of the parent company's financial statements to include its interest in subsidiaries.