Match the Following Terms to Their Correct Definition

question 69

Multiple Choice

Match the following terms to their correct definition:
-Situation where the investor owns less than 20% of the common stock of another company and therefore is not attempting to exert influence over the operating and financial policies of the investee

• A)equity security
• B)debt security
• C)passive
• D)significant influence
• E)control
• F)parent
• G)subsidiary
• H)trading securities
• I)available-for-sale securities
• J)held-to-maturity securities
• K)amortized cost method
• L)fair value method
• M)unrealized gains and losses
• N)equity method
• O)consolidation worksheet
• P)minority interest
• Q)business combination
• R)goodwill

---

Definitions:

Service The Market

involves addressing the needs and desires of a particular market segment by offering products, services, or solutions that cater specifically to that segment's demands.

Negative Externalities

Uncompensated adverse effects that an individual or firm's activity imposes on others, not accounted for in the market price.

Public Goods

goods that are non-excludable and non-rivalrous, meaning they can be used by everyone simultaneously without diminishing their availability to others.

Market Mechanism

The process by which supply and demand interactions determine prices and quantities of goods and services in an economy.