If One Company Owns More Than 50% of the Common

question 44

Multiple Choice

If one company owns more than 50% of the common stock of another company,

• A) a partnership exists
• B) a parent-subsidiary relationship exists
• C) the company whose stock is owned must be liquidated
• D) the cost method should be used to account for the investment

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Definitions:

Population Growth

The increase in the number of individuals in a population, often measured by the rate at which the population is increasing.

Birth Rates

The number of live births per thousand of the population per year.

Emigration Rate

The measure of how many individuals per thousand leave a country or region to reside elsewhere within a specified time frame.

Negative Growth

A decrease in the size or number of something, often used in the context of economies or populations shrinking.