If an Investment Is Owned 100%, Which Methods Will Result

question 27

Multiple Choice

If an investment is owned 100%, which methods will result in the same income and shareholders' equity appearing on the financial statements?

• A)Cost and consolidation.
• B)Equity and consolidation.
• C)Cost and equity.
• D)Each method results in different income and shareholder's equity amounts.

---

Definitions:

Cross-Functional Teams

Groups comprised of members from different departments or areas of expertise working together towards a common goal.

Divisional Focus

A strategic organizational approach that emphasizes the autonomy and specialization of divisions within a larger corporation.

Hybrid Structure

An organizational framework that combines elements of both functional and divisional structures, allowing for flexibility and more focused specialization.

Matrix Structure

A hybrid organizational structure that merges at least two different structural types, often integrating functional and product-oriented frameworks.