When a Corporation Owns More Than 50 Percent of the Voting

question 26

Multiple Choice

When a corporation owns more than 50 percent of the voting stock in another corporation,it usually should report its investment by using (the)

• A)equity method.
• B)cost adjusted to market method.
• C)book value method.
• D)consolidated financial statements.

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Definitions:

Socialist

Pertaining to a political and economic theory of social organization which advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.

Anarchic

Characterized by a lack of structured government or authority, often leading to disorder and confusion.

Theocratic

A theocratic system or government is one in which priests or religious leaders control the state, claiming divine commission or ruling in the name of a deity.

Terrorist Organization

A group involved in premeditated, politically motivated violence against noncombatant targets, usually to influence an audience.