Although Expensive to Create in Comparison with Other Forms of Businesses,the

question 44

True/False

Although expensive to create in comparison with other forms of businesses,the use of sole proprietorships is becoming all the more common.

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Definitions:

Indirect NCI

Stands for Indirect Non-Controlling Interest, which refers to the ownership interest in a company held by investors that do not have control or significant influence over the company.

Direct NCI

Direct non-controlling interest (NCI) refers to the portion of equity in a subsidiary not held directly by the parent company, giving those external shareholders a proportional share of the entity's net assets and profits.

Economic Entity

An organizational unit for which it is possible to separate financial information and which conducts economic activities independently.

Consolidated Financial Statements

The financial statements of a group in which the assets, liabilities, equity, income, expenses, and cash flows of the parent and its subsidiaries are presented as those of a single economic entity.