Consolidated Financial Statements Are Appropriate Even Without a Majority Ownership

question 17

Multiple Choice

Consolidated financial statements are appropriate even without a majority ownership if which of the following exists:

• A)​the subsidiary has the right to appoint members of the parent company's board of directors.
• B)​the parent company has the right to appoint a majority of the members of the subsidiary's board of directors because other ownership interests are widely dispersed.
• C)​the subsidiary owns a large minority voting interest in the parent company.
• D)​the parent company has an ability to assume the role of general partner in a limited partnership with the approval of the subsidiary's board of directors.

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Definitions:

Leading Strand

The leading strand is the strand of DNA which is synthesized continuously during DNA replication, in the direction of the replication fork.

Polynucleotide Strand

A polymer consisting of many nucleotide units, constituting a portion of a nucleic acid molecule.

Nucleotides

The building blocks of nucleic acids like DNA and RNA, consisting of a sugar, a phosphate group, and a nitrogenous base.

Okazaki Fragments

Short sequences of DNA nucleotides which are synthesized discontinuously and later linked together to form the lagging strand in DNA replication.