Beige Corporation Pays $500,000 to Acquire 40% of the Equity

question 47

Multiple Choice

Beige Corporation pays $500,000 to acquire 40% of the equity securities of Olive Technologies on May 5, 2015. This investment will be classified as a(n) :

• A)trading investment.
• B)available for sale.
• C)significant interest investment.
• D)held-to-maturity.

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Definitions:

Apical Dominance

The phenomenon where the main, central stem of the plant grows more vigorously than the other side stems due to the concentration of growth hormones at the tip.

Ethylene

A hydrocarbon gas (C2H4) that acts as a plant hormone, influencing growth, development, and responses to environmental stress.

Stimulate

To encourage or cause an increase in activity or a process, often leading to a desired response or function.

Inhibit

To inhibit is to prevent or decrease the rate of a process or reaction, often used in the context of biological mechanisms or chemical reactions.