Which of the Following Statements About Consolidation Is Not True

question 4

Multiple Choice

Which of the following statements about consolidation is not true?

• A)​Consolidation is not required when control is temporary.
• B)​Consolidation may be appropriate in some circumstances when an investor owns less than 51% of the voting common stock.
• C)​Consolidation is not required when a subsidiary's operations are not homogeneous with those of its parent.
• D)​Unprofitable subsidiaries may not be obvious when combined with other entities in consolidation.

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Definitions:

Original Offer

The initial proposal or bid made by one party in a negotiation.

Opening Stance

The initial position or attitude one adopts at the beginning of a negotiation or debate, often setting the tone for discussions and indicating preliminary expectations or demands.

Firmness

The quality of being resolute or showing steadfast adherence to a decision or opinion.

Committed Position

A firm stance or viewpoint held in a negotiation, often difficult to change or negotiate away from.