A Company That Owns Less Than 20% of Another Company's

question 21

True/False

A company that owns less than 20% of another company's stock may not use the consolidation method of accounting.

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Definitions:

Carbon Atoms

The fundamental building blocks of organic molecules, capable of forming four covalent bonds.

Molecule

The smallest unit of a chemical compound that can exist, consisting of two or more atoms bonded together.

Condensed Structure

A representation of a molecular structure that omits certain atoms or groups, assuming the reader will infer their presence to simplify depictions of organic compounds.

Structural Formula

A graphical representation of a molecular structure, showing how atoms are arranged and bonded together within a molecule.