Following the Accounting Concept of a Business Combination,a Business Combination

question 22

Multiple Choice

Following the accounting concept of a business combination,a business combination occurs when a company acquires an equity interest in another entity and has

• A)at least 20% ownership in the entity.
• B)more than 50% ownership in the entity.
• C)100% ownership in the entity.
• D)control over the entity,irrespective of the percentage owned.

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Definitions:

Legal Minimum

A legally established lower boundary on the price at which a good or service can be sold in the market.

Market Price

The contemporary price point at which goods or services can be transacted in a trading space.

Rent-Control Laws

Regulations that limit the amount landlords can charge for leasing residential properties to ensure affordability.

Minimum Rent

The least amount of money that a lessee may pay to lease a property for a specific period, often set by contractual agreement.