Marathon Corporation Owns 500 Shares of Mini Company's Common Stock

question 76

Multiple Choice

Marathon Corporation owns 500 shares of Mini Company's common stock.Mini Company has 100,000 shares of common stock outstanding.Marathon Corporation is the ________ and Mini Company is the ________.

• A)investee;investor
• B)investor;investee
• C)parent company;subsidiary company
• D)controlling company;noncontrolling company

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Definitions:

Responsibility Centres

Units within an organization for which managers are responsible, focusing on revenues, costs, or a combination of both, to measure performance.

Budgetary Slack

The practice of underestimating revenue or overestimating expenses to make budget targets more easily attainable.

Window Dress

Window Dressing is a financial strategy used by companies to improve the appearance of their financial statements or investment portfolio, often at the end of an accounting period.

Sales Staff

Employees responsible for the sale of products or services, pivotal in achieving business revenue targets and maintaining customer relationships.