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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Broad Themes

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