If Increasing the Utility of the Transfer Recipient Is the Only

question 5

Multiple Choice

If increasing the utility of the transfer recipient is the only criterion cared about,then _____.

• A)a cash payment will usual be preferred to an in-kind payment
• B)an in-kind payment will usually be preferred to a cash payment
• C)a cash payment and in-kind payment are always equal
• D)an in-kind payment will always be preferred to a cash payment

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Definitions:

Non-controlling Interest

The portion of equity in a subsidiary not owned by the parent company, also known as minority interest.

Profit After Tax

The net income of a company after all taxes have been deducted from revenues.

Consolidated Equity

The total amount of owners' or shareholders' equity in a conglomerate, after all inter-company balances and transactions have been eliminated in consolidation.