Which of the Following Statements Is False

question 163

Multiple Choice

Which of the following statements is false?

• A)One of the basic principles capitalism is based on is to "trust no one."
• B)To have real competition in a market economy no one business should be able to have any influence over price.
• C)A basic trade-off exists between the goals of equity and efficiency for a society.
• D)The forces of supply and demand will NOT automatically lead to an equitable distribution of income.

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Definitions:

Non-controlling Interest

A share in the equity and earnings of a subsidiary that are not owned by the parent company, also known as minority interest.

Consolidated Financial Report

A comprehensive financial statement that combines the financial information of a parent company with that of its subsidiaries, presenting it as a single economic entity.

Exercise Control

The ability of an entity (like a parent company) to govern the financial and operating policies of another entity (like a subsidiary) to benefit from its activities.

Voting Shares

Shares in a company that give the shareholders the right to vote on company matters, such as electing the board of directors.