How May a Not-For-Profit Organization Account for a Portfolio Investment

question 37

Multiple Choice

How may a not-for-profit organization account for a portfolio investment it has made in profit-oriented entity?

• A) By using fair value or the cost method.
• B) By using the equity method.
• C) By using proportionate consolidation.
• D)By consolidating the results of the profit-seeking entity with its own.

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Definitions:

McDonaldization

A term used to describe the increasing rationalization of the workplace and society, following principles of fast-food restaurants such as efficiency, calculability, predictability, and control.

American Lifestyles

A term encompassing the behaviors, customs, and practices commonly observed among individuals living in the United States, reflecting diverse cultural backgrounds.

Fast-Food Industry

A sector of the food service industry that specializes in food that can be prepared and served quickly.

Out-group

A social group to which an individual does not identify or belong, often viewed as distinct or oppositional to one's in-group.