Nashman Ltd

question 20

Multiple Choice

Nashman Ltd.is a private enterprise with five subsidiaries.Which of the
Following statements is true?

• A)Nashman must prepare consolidated financial statements.
• B)Nashman should report all subsidiaries on the same basis.
• C)Nashman must use the cost basis to report all subsidiaries.
• D)Nashman can choose the subsidiaries it wishes to include in its consolidated financial statements.

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Definitions:

Unity of Direction Principle

A leadership principle suggesting that team members should work towards the same objectives in a coordinated and cohesive manner.

Bureaucracy

An organizational system characterized by structured procedures and formal rules, typically involving a hierarchy of authority.

Modern Science

A systematic enterprise that builds and organizes knowledge in the form of testable explanations and predictions about the universe.

Hawthorne Studies

A series of productivity experiments conducted from 1924 to 1932, which concluded that workers' performance is influenced more by social factors and their working conditions than by physical or environmental factors.