Identify the Appropriate Accounting Method for Each of the Following

question 96

Essay

Identify the appropriate accounting method for each of the following situations involving investments in common shares AND justify your choice:
a_Purchase 10% and plan to sell in three months' time
b_Purchase of more than 55% of investee's shares to control their long term strategy
c_Purchase of 33% interest to share ownership with two other companies in a risky endeavour in a developing country
d_Purchase of 40% interest in a company to significantly influence their product development

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Definitions:

Servant Leadership

A leadership philosophy that emphasizes the role of the leader as serving the needs of others first, promoting the growth, well-being, and performance of followers.

Empowering Leadership

Leadership that focuses on giving team members autonomy, resources, and the confidence to make decisions and take initiatives.

Entrepreneurial Leadership

A leadership style characterized by innovation, risk-taking, and proactiveness in identifying and exploiting new business opportunities.

Authoritarian Leadership

A leadership style characterized by individual control over all decisions and little input from team members.