What Is the Founding Principle of Full Consolidation

question 11

Multiple Choice

What is the founding principle of full consolidation?

• A) All assets and liabilities of the subsidiary are added to those of the parent.
• B) The investment in the subsidiary is re-evaluated in the consolidated financial statements.
• C) Only part of the assets and liabilities of the subsidiary are added to those of the parent.
• D) None of these

---

Definitions:

Direct Election

A voting system where the public votes directly for representatives or leaders rather than through an intermediary, like an electoral college.

Collecting Taxes

The process by which a government or authority gathers monetary contributions from citizens and businesses to fund public services and infrastructure.

Popular Majority

The majority of total votes cast by the public in an election, as opposed to a majority of elected representatives or electoral votes.

Tyranny

Tyranny is a form of government in which a single ruler holds absolute power and exercises it in a cruel or unjust manner.