The Two Business Entities Involved in an Investment in Securities

question 106

Multiple Choice

The two business entities involved in an investment in securities with controlling influence,for which consolidated financial statements are prepared,are known as:

• A)Parent and Investor
• B)Subsidiary and Investee
• C)Consolidator and Parent
• D)Parent and Subsidiary
• E)Both are referred to as partners.

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Definitions:

Genetic Makeup

The unique combination of genes inherited from one's parents, influencing physical and sometimes behavioral traits.

Heredity

The passing on of physical or mental characteristics genetically from one generation to another.

Canalization

The tendency for a trait that is biologically programmed to be restricted to only a few outcomes.

Range of Reaction

A theory suggesting that genetic potential sets certain limits on the expression of traits, but the environment determines where within those limits an individual will fall.