What Is an "Associate

question 87

Multiple Choice

What is an "associate"?

• A)An entity where unanimous consent over decisions is required by the owners.
• B)An entity where the investor can exercise unilateral control over the decisions of the investee.
• C)An entity where the investor has the ability to participate in decisions affecting the investee.
• D)An entity that cannot sell shares to the public or issue debt in the marketplace.

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Definitions:

Prudent Risk Management

The process of identifying, assessing, and prioritizing risks followed by coordinated application of resources to minimize, monitor, and control the probability or impact of unforeseen events.

Wage, Rent

Wage refers to the payment to labor for its contribution to production, while rent is the payment for the use of land or property.

Entrepreneurial Ability

The human resource that combines the other economic resources of land, labor, and capital to produce new products or make innovations in the production of existing products; provided by entrepreneurs.