Company a Limited Owns 90% of the Share Capital of Company

question 14

Multiple Choice

Company A Limited owns 90% of the share capital of Company B Limited.Company B Limited paid a dividend of $20 000 during the financial period.The adjustment entries in the consolidation worksheet for the dividend include:

• A)DR Dividend revenue $18 000
• B)DR Dividend revenue $20 000
• C)DR Dividend payable $18 000
• D)DR Dividend receivable $20 000.

---

Definitions:

Competitive Scope

The breadth of the arena in which a company competes, including factors like geography, product range, and target market segments.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over another's due to their trust and faith in that brand.

Differentiation Strategy

A business approach where a company develops unique products or services to stand out from competitors.

Organic Structure

An organizational format that is flexible, with low levels of formalization, wide spans of control, and decentralized decision-making.