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When There Are Two or More Investing Firms in an Entity,how

question 74

Essay

When there are two or more investing firms in an entity,how is it determined which entity consolidates the variable interest entity?


Definitions:

Majority Rule

A decision-making principle where the preferences of more than half of the members of a group determine the decision made by that group.

Groupthink

A phenomenon in which the desire for harmony or conformity in a group results in an incorrect or deviant decision-making outcome.

Cohesive Groups

Cohesive groups are characterized by strong bonds and a sense of unity among members, often leading to higher levels of group satisfaction and effectiveness.

Group Consensus

A general agreement reached by a group as a whole, where most members support the decision even if it's not their first choice.

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