The Disadvantage of Correlational Studies Is That They Do Not

question 218

Short Answer

The disadvantage of correlational studies is that they do not allow a researcher to determine ______.

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Definitions:

Parent-Company Extension Method

An accounting method where the financial statements of the parent company include its investments in subsidiaries without consolidating their individual financial statements.

IFRS 3

An International Financial Reporting Standard that outlines the accounting requirements for business combinations.

Entity Method

A consolidation method wherein investments in subsidiaries are reported at cost and income from the investment is recognized to the extent of dividends received.

Subsidiary

A company that is controlled by another company, typically through ownership of more than half of its voting stock.