Match the Following Terms to Their Correct Definition

question 61

Multiple Choice

Match the following terms to their correct definition:
-situation where the investor owns less than 20 percent of the common shares of another company and therefore is not attempting to exert influence over the operating and financial policies of the investee

• A)equity security
• B)debt security
• C)passive
• D)significant influence
• E)control
• F)parent
• G)subsidiary
• H)goodwill
• I)business combination
• J)minority interest
• K)fair value method
• L)unrealized gains and losses
• M)equity method
• N)consolidation worksheet

---

Definitions:

Profit Margin

The percentage of revenue remaining after all expenses have been deducted from sales.

Return On Investment

Return on investment (ROI) measures the gain or loss generated on an investment relative to the amount of money invested, expressed as a percentage.

Investment Centre

A division or unit within a company that is responsible for its own revenues, expenses, and assets, and is evaluated based on its return on investment.

Performance Evaluation

An assessment process where an individual's or team's work outputs and efficiency are measured and reviewed against set goals or criteria.