Which of the Following Is the Method Used When One

question 86

Multiple Choice

Which of the following is the method used when one company owns less than 20% of the shares of another company?

• A)Market value method
• B)Consolidation method
• C)Equity method
• D)Amortized method

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Definitions:

Comparative Advantage

The ability of a party to produce a particular good or service at a lower opportunity cost than others, enabling trade benefits.

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors with the same resources.

Absolute Advantage

The ability of a country, individual, or firm to produce a good more efficiently than another entity, using fewer resources.

Fewer Resources

A situation or condition where there is a reduced availability of inputs or factors of production such as land, labor, and capital.