In School, You May Have Learned the Rule of How

question 10

True/False

In school, you may have learned the rule of how to determine the area of a circle. The formula was πR2. This formula always guarantees a solution and that you will be able to determine the area. Thus, the formula is an example of an algorithm.

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Definitions:

Equity Method

An accounting technique used by firms to assess the profits earned by their investments in other companies, by reporting these profits proportionate to their stake.

Dividend Policy

A company's strategy or policy outlining how often dividends will be paid out to shareholders and in what amount.

Reported Income

The income figure that a company officially reports to its shareholders and regulatory bodies, often after adjustments and before taxes.

Influencing Investee

An investment situation where the investor has significant influence over, but not control of, the financial and operating policies of another entity.