A Parent Company Owns a 100% Interest in a Subsidiary

question 38

Multiple Choice

A parent company owns a 100% interest in a subsidiary.Recently, the subsidiary paid a 10% stock dividend.The dividend should be recorded on the books of the parent

• A)​at the par value or stated value of the shares received.
• B)​at the market value of the shares on the date of declaration.
• C)​at the market value of the shares on the date of distribution.
• D)​merely as a memo entry indicating that the cost of the original investment now is allocated to a greater number of shares.

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Definitions:

Supportive Culture

Supportive culture refers to an organizational environment that fosters collaboration, respect, and empowerment among its members, enhancing performance and satisfaction.

Integrative Negotiations

A negotiation strategy where parties collaborate to find a win-win solution that satisfies the interests of all parties involved.

Distributive Negotiations

A negotiation strategy focused on dividing a fixed amount of resources, often resulting in a win-lose outcome where one party's gain is another's loss.

Intraorganizational Negotiations

Negotiation processes that take place within an organization, often involving discussions between departments or individuals over resources, responsibilities, or policies.