Listed Below Are Five Terms Followed by a List of Phrases

question 26

Short Answer

Listed below are five terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term placing the letter designating the term in the space provided.
a.Held-to-maturity securities
b.Trading securities
c.Available-for-sale securities
d.Equity method
e.Consolidation method
Phrases:
_____ This category is used only for debt securities.
_____ An investor owns 40% of the common voting shares in the company and can exercise significant influence.
_____ Common stock not held for immediate resale and the investor owns 2% of the outstanding shares.
_____ An investor owns over 50% of the common voting shares in the company.
_____ Common stock held for immediate resale.

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Definitions:

Total Cost

Total cost is the complete cost of production, including both fixed and variable costs incurred in the production of goods or services.

Marginal Cost

The cost of producing one more unit of a good or service, crucial for economic decision-making processes.

Marginal Revenue

The revenue increase resulting from the sale of an extra unit of a good or service.

Monopolistically Competitive

A market structure in which several or many sellers each produce similar, but slightly differentiated products; competition is based on product differentiation, prices, and marketing.