​Capital Flows Have Become _______ Over Time; a Significant Portion

question 1

Multiple Choice

​Capital flows have become _______ over time; a significant portion of capital flows are due to _______ .

• A) ​remained about the same; large institutional investors
• B) ​smaller; international trade
• C) ​larger; large institutional investors
• D) ​larger; international trade

Understand the impact of subsidiaries' dividends on the parent company's investment account.

Understand the determination of noncontrolling interest and its value at the date of acquisition.

Apply the acquisition method to calculate the amount of goodwill in business combinations.

Calculate income attributable to parent company shareholders from subsidiary operations.

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Definitions:

Projection

A defense mechanism in which individuals attribute their own unacceptable thoughts, feelings, or motives to another person.

Defense Mechanism

Psychological strategies used unconsciously to protect oneself from anxiety or unacceptable thoughts and feelings.

Repression

A defense mechanism where distressing thoughts, memories, or desires are kept out of conscious awareness.

Reaction Formation

A defense mechanism where an individual unconsciously replaces unacceptable or threatening inner wishes and fantasies with an exaggerated version of their opposite.