Non-Controlling Interests Arise When

question 23

Multiple Choice

Non-controlling interests arise when:

• A) The parent entity does not control a subsidiary in the group.
• B) The parent entity raises capital through preference shares that have the characteristics of debt to fund the subsidiary.
• C) The subsidiary has owners of equity who are not owners through their ownership interest in the controlling parent entity.
• D) The subsidiary has invested in other entities in which it does not have a controlling interest.

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Definitions:

Constituencies

The body of voters or residents in a specified area who are entitled to elect a representative to a legislative or other public body.

Appropriation

The legislative process of allocating funds to specific governmental purposes, projects, or activities.

Department of Transportation

A federal Cabinet department of the U.S. government concerned with transportation, responsible for highways, railroads, aviation, and maritime shipping.

Spending Bill

Legislation proposed and passed by a legislative body that authorizes government spending on specific programs, services, or activities.