In AASB 3,the Indicia of an Acquiring Entity's Power to Control

question 19

Multiple Choice

In AASB 3,the indicia of an acquiring entity's power to control the other combining entities in a business combination do not include the power to:

• A) exercise more than half of the voting rights in another entity through the site of the voting power or by virtue of an agreement with other investors.
• B) appoint or remove a majority of the members of the governing body of the acquired entities.
• C) cast the majority of votes at meetings of the governing body.
• D) none of the above.

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Definitions:

Inefficiently Employed Resources

Inefficiently Employed Resources refer to the use of resources in a way that does not maximize the potential output or productivity, often leading to wastage and lower economic efficiency.

Economize

The act of reducing expenditure or conserving resources to achieve efficiency in the allocation of resources.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world with limited resources, leading to the necessity of choice.

Economic Problem

The fundamental issue of having limited resources to meet unlimited wants and needs, requiring choices and priorities in allocation.