An Economic Model Includes

question 2

Multiple Choice

An economic model includes

• A) only normative statements.
• B) no use of marginal concepts.
• C) all known details in order to increase its accuracy.
• D) only details considered essential.

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Definitions:

Consolidated Financial Statements

Financial statements that present the financial position and results of operations of a parent company and its subsidiaries as one single entity.

Parent Company

A parent company is a corporation that owns enough voting stock in another corporation (subsidiary) to control its board of directors and therefore its operations and policies.

Subsidiary

A company that is completely or partially owned and wholly controlled by another company, referred to as the parent company.

Voting Stock

Shares that give the shareholder a right to vote on company matters, such as electing the board of directors.