If One Company Owns More Than 50% of the Common

question 119

Multiple Choice

If one company owns more than 50% of the common stock of another company

• A) a partnership exists
• B) a parent-subsidiary relationship exists
• C) the company whose stock is owned must be liquidated
• D) the fair value method should be used to account for the investment

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Definitions:

Committed

Showing dedication and loyalty to a cause or activity; being wholeheartedly involved.

High Supportive

Pertains to a leadership behavior characterized by showing concern for employees' well-being and individual needs, creating a friendly and supportive work environment.

Low Directive

A leadership style characterized by giving fewer orders and instructions, allowing more autonomy and self-guidance for followers.

Directive Behavior

A leadership style where instructions, regulations, and expectations are clearly and directly communicated.