When an Investor Owns 35% of the Stock of Another

question 11

True/False

When an investor owns 35% of the stock of another business,cash dividends received from the investee company are recorded by decreasing the Equity-method Investment account.

---

Definitions:

Obedience

The act of following orders or instructions from an authority figure, sometimes studied in the context of social psychology experiments.

Milgram's Research

A series of social psychology experiments in the 1960s that studied obedience to authority figures.

Learner Made Mistake

A situation where a person who is in the process of learning something does something incorrectly.

Informational Influence

A social psychology concept where an individual conforms to the opinions or behaviors of a group, believing the group has accurate information.