If a Company Owns More Than 20% of the Stock

question 121

Multiple Choice

If a company owns more than 20% of the stock of another company and the stock is being held as a long-term investment, which method would the investor normally use to account for this investment?

• A) Effective method.
• B) Fair value method.
• C) Cost with amortization method.
• D) Historical cost method.
• E) Equity method.

Explain the importance and application of Pareto analysis in TQM.

Understand how different factors such as slope, size, and shape affect the drainage basin's response to rainfall.

Analyze hydrograph data to deduce stream discharge, storm intensity, and urbanization impacts on runoff.

Comprehend the formation of geographical features like deltas due to sediment deposition when a river meets a lake or sea.

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Definitions:

Tariff

A tax imposed by a government on goods and services imported from other countries, often used to protect domestic industries from foreign competition.

International Trade

International Trade involves the exchange of goods and services across international boundaries, driven by the principles of comparative advantage and market demand.

Tariffs

Taxes imposed by a government on imported goods.

Comparative Advantage

The capacity of a nation or company to generate a specific product or service with a smaller opportunity cost compared to its rivals.