Formal Organizations

question 89

Multiple Choice

Formal organizations

• A) are secondary groups that are organized to accomplish complex tasks efficiently.
• B) may be very small or very large.
• C) are not relevant to most people's lives.
• D) are generally organized around kinship or friendship.

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Definitions:

Share Dilution

A reduction in existing shareholders' ownership percentage caused by the issuance of new shares.

Government Support

Financial or non-financial aid provided by the government to businesses, industries, or individuals in forms such as grants, loans, or tax incentives.

NCI

NCI, or Non-Controlling Interest, refers to the share of ownership in a subsidiary that belongs to shareholders other than the parent company.

Entity Method

An accounting technique used in consolidations, treating the parent and subsidiary as separate entities for the calculation of minority interest and consolidated net income.