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:

Strategic Plans

Long-term, overarching plans that outline how an organization will achieve its goals and objectives within a specific timeframe.

Operational Plans

Detailed, short-term action plans that outline how goals or objectives will be achieved within a specific timeframe.

Strategic Management Process

A continuous practice that involves planning, monitoring, analyzing, and assessment of all that is necessary for an organization to meet its goals and objectives.

Corrective Action

Measures taken to rectify a fault or reduce the likelihood of its recurrence in the future. Often used in the context of quality management and compliance.