If One Company Owns More Than 20% of the Shares

question 21

Multiple Choice

If one company owns more than 20% of the shares of another company and the shares are being held as a long-term investment,which method would normally be used to account for this investment?

• A) Equity.
• B) Fair value.
• C) Historical cost.
• D) Straight-line.
• E) EffectivE.

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Definitions:

Othering

A process of viewing or treating a person or group of people as fundamentally different from oneself, often leading to marginalization.

Dominant Group

Refers to the social group in a society that holds the most power, wealth, or privilege, often setting norms and values.

Privileged Group

A social group that has advantages, special rights, or immunities granted or available only to a particular person or group of people.

Second Wave

Often refers to the second phase or generation of a movement, notably used in the context of the second wave of feminism in the 1960s-1980s focusing on equality and discrimination.