A Noncontrolling (Minority) Interest Arises When

question 46

Multiple Choice

A noncontrolling (minority) interest arises when:

• A) a parent company excludes the subsidiary company from the consolidated financial statements.
• B) a parent company owns less than 100% of the stock of a subsidiary.
• C) a subsidiary company is not included in the consolidated financial statements.
• D) a subsidiary company represents less than 20% of the value of the consolidated company.

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Definitions:

Traditional Authority

A form of leadership in which authority is legitimized by customs, cultural traditions, and historical precedence.

Rational-legal Authority

A form of leadership where authority is legitimized by legal rules and regulations, and is exercised by officials according to their administrative roles.

Semi-nomadic Lifestyle

A way of life for some cultures that involves moving seasonally while maintaining some fixed habitation.

Harvesting Season

The time of year when crops are ripe and ready to be gathered, varying according to the type of crop and geographical location.