Harriet Has Just Taken a New IQ Test

question 184

Multiple Choice

Harriet has just taken a new IQ test. She answered 88 questions correctly. However, this test has not yet been standardized. Therefore,

• A) her IQ score is 88.
• B) we do not know how her score compares to that of other people.
• C) we can be sure that her score is neither reliable nor valid.
• D) we know that her IQ is below average, but we do not know how much below average.

---

Definitions:

Consolidated Balance Sheet

A financial statement that aggregates the assets, liabilities, and equity of a parent company and its subsidiaries.

Subsidiary Company

A company that is controlled by another company, often referred to as the parent company, through ownership of more than half of its voting stock.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and subsequently adjusted for the investor's share of the investee's profits or losses.