Examlex
An examiner of trainee chefs wanted to look at the underlying constructs of their 12 core culinary skills assessments. They ran a factor analysis with varimax rotation on the scores of the 12 assessments. Looking at the rotated factor matrix from their output below, what would be a good label for factor 2?
Equity Method
The equity method is an accounting technique used by a company to record its investment in another company when it has significant influence but not full control, typically between 20% and 50% ownership.
Significantly Influenced
A condition where an investor has a considerable but not controlling interest in another company, able to affect its policies without direct control.
Non-Strategic Investments
Investments made without a long-term plan or alignment with the core goals of an investor or organization.
Short Or Long-Term
A classification that distinguishes between assets, liabilities, or goals based on the duration, typically under or over one year, respectively.
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