Which Statement Is Correct About a Financial Instrument

question 76

Multiple Choice

Which statement is correct about a financial instrument?

• A)An arrangement where one party has the power to participate in the financial and operating policy decisions of another entity.
• B)An arrangement where one entity governs the financial and operating policies about another entity.
• C)A contractual arrangement whereby two or more parties share control over an economic activity and all strategic decisions requires unanimous consent by all parties.
• D)An arrangement that gives rise to a financial asset for one entity and a financial liability or equity instrument for another entity.

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Definitions:

Ethical Lapse

A failure to act in a morally correct manner, often violating accepted ethical standards.

Intellectual Property

A category of property that includes intangible creations of the human intellect, such as inventions, literary and artistic works, designs, and symbols, names, and images used in commerce.

Efficient Research

Conducting studies or investigations in a manner that maximizes productivity and results while minimizing wasted time and resources.

Critical Gaps

Significant missing elements or weaknesses in a plan, knowledge, or system that need to be addressed.