In Reporting Consolidated Earnings Per Share When There Is a Wholly

question 108

Multiple Choice

In reporting consolidated earnings per share when there is a wholly owned subsidiary, which of the following statements is true?

• A) Parent company earnings per share equals consolidated earnings per share when the equity method is used.
• B) Parent company earnings per share is equal to consolidated earnings per share when the initial value method is used.
• C) Parent company earnings per share is equal to consolidated earnings per share when the partial equity method is used and acquisition-date fair value exceeds book value.
• D) Parent company earnings per share is equal to consolidated earnings per share when the partial equity method is used and acquisition-date fair value is less than book value.
• E) Preferred dividends are not deducted from net income for consolidated earnings per share.

Appreciate the impact of dynamic and changing environments on organisational strategy and operations.

Understand the integration of different management theories into contemporary management practices like Theory Z.

Recognize the features and importance of learning organizations in promoting continuous improvement.

Distinguish between classical, behavioural (human resource), and quantitative approaches to management thinking.

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Definitions:

Respond Time

The duration taken to reply or react to a communication or request.

Groupthink

A phenomenon where the desire for harmony or conformity in a group results in an irrational or dysfunctional decision-making outcome.

Unpopular Opinions

Views or beliefs that diverge from the majority consensus within a community or society.

Harmony

A pleasing combination or arrangement of different parts that creates a consistent, orderly, or aesthetically appropriate result.