When a Subsidiary Owns Shares of the Parent, the Subsidiary's

question 14

Multiple Choice

When a subsidiary owns shares of the parent, the subsidiary's investment account

• A)​should be accounted for using the equity method.
• B)​is not eliminated so the subsidiary's investment in the parent is displayed on the balance sheet.
• C)​is maintained at its original cost since the shares have no claim on income.
• D)​may be accounted for using the cost, equity or sophisticated equity method.

Recognize the difference between direct and indirect approaches in negative messages.

Demonstrate the ability to write effective openings and closings for negative messages.

Apply techniques for deemphasizing bad news within a message.

Understand the role of an apology and how to integrate it properly in negative messages.

---

Definitions:

Pleasure Principle

is a psychoanalytic concept suggesting that people seek pleasure and immediate gratification of needs to avoid pain, guiding the id's desires.

Psychosexual Development

Freud's theory on the stages of psychological development from infancy to adulthood, focusing on how early life sexual urges shape personality.

Oral Trait

A characteristic of personality development associated with the oral stage of psychosexual development, focusing on behaviors related to the mouth such as dependency, eating, and verbal communication.

Perfectionism

A personality trait characterized by a person's striving for flawlessness and setting excessively high performance standards, accompanied by critical self-evaluations and concerns regarding others' evaluations.