If One Company Owns More Than 50% of the Common

question 45

Multiple Choice

If one company owns more than 50% of the common stock of another company:

• A) the equity method should be used to account for the investment.
• B) a partnership exists.
• C) a parent-subsidiary relationship exists.
• D) the company whose stock is owned must be liquidated.

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Definitions:

Leadership Equation

A conceptual formula or framework used to understand the key factors that influence effective leadership, such as the leader's qualities, the situation, and the followers.

Qualities of the Individual

The characteristics or attributes that contribute to the identity or essence of a person.

Environmental Factors

Elements or conditions in the surrounding environment that impact the functioning and behavior of individuals, organizations, or systems.

Aligning People

The process of ensuring that everyone in an organization understands its goals and strategies and works in harmony to achieve them.