If One Company Owns More Than 50% of the Ordinary

question 12

Multiple Choice

If one company owns more than 50% of the ordinary shares of another company,

• A) the cost method should be used to account for the investment.
• B) a partnership exists.
• C) a parent-subsidiary relationship exists.
• D) the company whose shares are owned must be liquidated.

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Definitions:

Sequencer

A control function or device that produces a series of steps or operations, often used in automated processes.

Sequencer Position

A control process or step in a sequence where a particular operation or series of operations is to be executed.

Energized

The state of being powered or having electrical current flowing through, commonly referring to circuits, devices, or components.