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

question 2

True/False

A company that owns less than 20% of another company's stock must use the consolidation method of accounting.

---

Definitions:

Insanity Defense

A legal defense used in criminal trials where the defendant claims that they should not be held responsible for their actions due to mental illness.

Intention to Commit

A plan or decision to engage in a specific action or behavior.

Irresistible Impulse Rule

A legal defense theory stating that a defendant was compelled to commit a crime due to an overwhelming impulse that they could not resist, despite understanding the nature of the act.

Diminished Capacity

A legal defense asserting that an individual's mental state, though not completely impaired, was significantly disturbed at the time of the crime, affecting their judgment or intentions.