Which of the Following Statements Is Correct

question 6

Multiple Choice

Which of the following statements is correct?

• A) The minority interest cannot have the majority of the equity in a subsidiary since it would not then be a minority interest.
• B) The minority interest cannot have the majority of voting power in a subsidiary since a majority would give that interest the power to control a subsidiary.
• C) The minority interest may have the majority of the equity and a majority of the voting power in a subsidiary but still remain a minority interest.
• D) None of the above.

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Definitions:

Production Function

A mathematical model that describes the relationship between inputs used in production and the output produced from those inputs.

Labor Hired

The quantity of work force employed by businesses to perform various tasks, measured in worker units or hours.

Minimize Costs

The process of finding strategies and methods to reduce expenses and operational costs to the lowest possible level without sacrificing quality or performance.

Production Function

An equation that describes the relationship between inputs (like labor, capital) and the maximum output that can be produced with those inputs.