The Equity Method Generally Should Be Used to Account for an Investment

question 21

Multiple Choice

The equity method generally should be used to account for an investment in stock when the level of ownership is

• A)between 20 and 50 percent.
• B)10 percent or more.
• C)less than 20 percent.
• D)between 10 and 40 percent.

Understand the essential components of effective communication including sending, receiving messages, and the use of verbal and nonverbal cues.

Distinguish between perceptions, assumptions, and reality in the context of communication.

Recognize the benefits and challenges of oral and written forms of communication.

Identify the factors contributing to the richness of information in various media.

---

Definitions:

Firm's Overall Objectives

The overarching goals or aims that guide a company's operations and strategy, such as profit maximization, growth, and market share.

Screeningevaluation

Screening and evaluation involve the process of assessing and reviewing potential projects, candidates, or ideas to determine their viability or suitability before proceeding to more in-depth analysis or implementation.

Market Testing

The stage of the new-product development process that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy.

Business Analysis

The stage of the new-product development process that specifies the features of the product or service and the marketing strategy needed to bring it to market and make financial projections.