Machiavelli Says a Prince Is Not Bound to Keep Faith

question 59

True/False

Machiavelli says a prince is not bound to keep faith with other princes because other princes are themselves likely to break faith.

---

Definitions:

Cost Method

An accounting approach where investments are recorded at their acquisition cost, without reflecting the investor's share of the investee's profits or losses until dividends are received.

Effective Tax Rate

reflects the percentage of income paid as tax, taking into consideration both federal and state taxes, and deductions.

Consolidated Retained Earnings

The accumulated net income of a company after dividends are paid, combined from all its divisions or subsidiaries.

Equity Method

An accounting technique used to reflect the investment in another company, typically applied when the investor has significant influence over the investee but does not fully control it.