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:

Pollutants

Substances that contaminate air, water, or soil, potentially causing harm to human health, the environment, or both.

Emissions

The release of substances, such as gases, liquids, or particulates, into the air or water, often associated with pollution from industrial activities or vehicles.

Efficient Method

A process or technique that achieves a goal with minimal waste of time, resources, or energy, maximizing productivity and effectiveness.

Incentive to Cheat

A motivation or reason for individuals or entities to break rules or agreements to gain an advantage.