A System Created as Part of the Overall Management System

question 67

Multiple Choice

A system created as part of the overall management system is a(n) ________.

• A) offshoot
• B) microsystem
• C) spinoff
• D) subsystem
• E) outgrowth

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Definitions:

Common Shares

Equity securities that represent ownership in a corporation, providing voting rights and a share in the company's profits through dividends.

Other Comprehensive Income

Components of comprehensive income not included in net income, reflecting gains and losses that have not been realized through the income statement.

Journal Entries

The method by which financial transactions are recorded in an accounting system, involving a debit to one or more accounts and a credit to one or more accounts.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, but not control those policies; often evidenced by ownership of 20% to 50% of the voting shares of the investee.