An Endowment Refers to _____

question 74

Multiple Choice

An endowment refers to _____.

• A)a set of property rights
• B)a diversified portfolio
• C)an initial distribution of goods
• D)a set of least-cost production possibilities

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Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, but not control them, often associated with ownership of 20% to 50% of voting stock.

Cost Method

An accounting method where investments are recorded at their acquisition cost.

Journal Entries

The method by which transactions are recorded in the company's accounting records with a debit and credit entry.

Significant Influence

The ability to be involved in the financial and managerial policy decisions of an investment without having controlling authority over those policies.