Which of the Following Is NOT a Reason That the Importance

question 61

Multiple Choice

Which of the following is NOT a reason that the importance of trust has increased in today's business climate?

• A)Job performance is related to trust.
• B)Job satisfaction is related to trust.
• C)Only 60 percent of U.S. employees trust their leaders.
• D)Downsizing has eroded the faith that workers have in their leaders.

---

Definitions:

Entity Theory

A concept in accounting that treats a business as separate from its owners or other businesses, supporting the preparation of separate financial statements.

Consolidated Net Income

The total net income of a parent company and its subsidiaries after eliminating intercompany transactions, presented in a consolidated financial statement.

Non-Controlling Interest

The portion of equity in a subsidiary not attributable, directly or indirectly, to a parent company.

Intercompany Profits

Profits that arise from transactions between companies under the same parent company, usually eliminated during consolidation of financial statements.