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:

Cost-leadership

A strategic approach by a company to become the lowest-cost producer in its industry for certain products or services, aiming to gain a competitive advantage.

Low Income

Describes a level of earnings that is below the average or median, often associated with economic challenges and limitations in access to resources.

SWOT Analysis

A strategic planning tool used to identify Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Threats

Potential dangers or harm that can negatively impact individuals, organizations, or systems.