Michelle Is a Travel Agent

question 64

Multiple Choice

Michelle is a travel agent. Whenever she sells an expensive vacation package, she encourages the customer to buy travel insurance, which provides reimbursement in case of trip cancellation due to illness or another emergency. Michelle is trying to reduce her customers' ________ risk.

• A)psychological
• B)financial
• C)performance
• D)social
• E)physiological

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Definitions:

Noncontrolling Interest

The portion of equity (ownership) interest in a subsidiary not attributable to the parent company, reflecting the minority shareholders' share of the subsidiary’s net assets and incomes.

Noncontrolling Interest

A minority stake in a corporation, where the share does not offer control over the company's operations.

Initial Value Method

A type of accounting for investments where the investment is recorded at its cost at the time of acquisition, without subsequent change for increases or decreases in value.

Noncontrolling Interest

A share of equity in a subsidiary not held by the parent company, reflecting the interest of minority shareholders.