A Parent Company Owns a Controlling Interest in a Subsidiary

question 43

Multiple Choice

A parent company owns a controlling interest in a subsidiary whose stock has a book value of $27 per share. The last day of the year, the subsidiary issues new shares entirely to outside parties at $33 per share. The parent still holds control over the subsidiary. Which of the following statements is true?

• A) Since the sale was made at the end of the year, the parent's investment account is not affected.
• B) Since the shares were sold for more than book value, the parent's investment account must be increased.
• C) Since the shares were sold for more than book value, the parent's investment account must be decreased.
• D) Since the shares were sold for more than book value but the parent did not buy any of the shares, the parent's investment account is not affected.
• E) None of the above.

Recognize the limitations and criticisms of psychoanalysis.

Identify the key techniques and processes used in psychoanalysis, such as free association and dream analysis.

Understand the concept of resistance and transference in psychoanalysis.

Comprehend the role of insight in the effectiveness of psychoanalysis.

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Definitions:

Agent in Negotiations

A representative who acts on behalf of another party during negotiation processes, often to broker deals or resolve conflicts.

Surveillance

The continuous observation of a place, person, group, or ongoing activity to gather information.

Integrative Manner

An approach to negotiation that seeks to find solutions that satisfy the needs and interests of all parties involved, often through creative problem-solving.

Audience Involvement

The level of engagement and participation of the audience in communication or performance.