When Is the Equity Method Not Used to Account for Long-Term

question 33

Multiple Choice

When is the equity method not used to account for long-term investments in stocks?

• A) When the investment is 30% of the voting stock and significant influence can be achieved.
• B) When the investment is 15% and significant influence can be achieved.
• C) When the investment is greater than 50% of the voting stock and control is achieved.
• D) When the investment is 40% of the voting stock and significant influence can be achieved.

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Definitions:

Treat People Fairly

The principle of dealing with individuals in a just, equitable, and unbiased manner, recognizing their unique circumstances and needs.

Focus on Key Objectives

The prioritization and concentration on achieving the most important goals or outcomes of an endeavor or strategy.

Tolerance of Differences

The willingness to accept and respect the differing beliefs, practices, or characteristics of others.

Different Styles of Problem Solving

Various methods or approaches used to identify solutions to problems, ranging from analytical to creative strategies.