For Financial Reporting Purposes, U

question 17

Multiple Choice

For financial reporting purposes, U.S. firms must consolidate the earnings of any subsidiary that is over ________ owned.

• A) 20%
• B) 40%
• C) 50%
• D) 75%

---

Definitions:

Antitrust Regulations

Laws and regulations designed to promote competition and prevent monopolies by prohibiting business practices that restrict or control trade and market dominance.

Divest

The process of selling off subsidiary business interests or investments as a strategic move for a company.

Newly Merged Firm

A company that has recently combined with another entity in a merger, pooling their resources, operations, and strategies to form a single, larger organization.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.