If a Parent Company Has Controlling Interest in a Subsidiary

question 31

Multiple Choice

If a parent company has controlling interest in a subsidiary which has no potentially dilutive securities outstanding,then in the calculation of consolidated diluted EPS,it will be necessary to

• A)only make an adjustment of subsidiary's basic earnings.
• B)replace the parent's equity in subsidiary earnings with the parent's equity in subsidiary's diluted EPS.
• C)make a replacement calculation in the parent's basic earnings for the EPS.
• D)only use the parent's common shares and shares represented by the parent's potentially dilutive securities.

---

Definitions:

Leader Values

Core beliefs and principles that guide a leader's actions, decisions, and interactions with others.

Transformational Leadership

A leadership style where leaders encourage, inspire, and motivate employees to innovate and create change that will help grow and shape the future success of the company.

Moral Evaluation

The process of judging the rightness or wrongness of actions based on ethical principles and moral codes.

Objectivity

The quality of being unbiased, impartial, and not influenced by personal feelings or opinions in considering and representing facts.