What Is the Dominant Factor Used to Distinguish Non-Strategic Investments

question 59

Multiple Choice

What is the dominant factor used to distinguish non-strategic investments from significant influence investments?

• A) Use of the cost method to account for and report the investment.
• B) Use of the equity method to account for and report the investment.
• C) The investor's intention to establish or maintain a long-term operating relationship with the investee.
• D) The percentage of equity held by the investor.

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Definitions:

Organizational Commitment

The level of engagement and loyalty an employee feels towards their company or workplace.

Contractual Obligation

A legal agreement between parties that outlines duties, rights, and responsibilities.

Continuance Commitment

The level of engagement and willingness of an employee to remain with an organization due to perceived costs of leaving.

Employee Involvement

The degree to which employees are able to contribute ideas and be part of decision-making processes in their workplace.