All of the Following Statements About Majority Rule Are True

question 66

Multiple Choice

All of the following statements about majority rule are true EXCEPT:

• A) formal voting may take place or members may be polled to find the majority viewpoint.
• B) all group members will feel successful as a result of the majority rule.
• C) some people will feel like "winners" and others will feel like "losers" when the final vote is tallied.
• D) the very process of voting can create coalitions.
• E) this method parallels the democratic political system and is often used without awareness of its potential problems.

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Definitions:

Initial Value Method

An accounting approach where investments are first recorded at their acquisition cost.

Intra-entity Transfers

Transactions occurring between divisions or units within the same company, affecting financial statements without impacting the consolidated financial position.

Consolidated Income Tax Return

A single income tax return filed by a group of affiliated corporations, treating the entire group as a single taxpayer.

Subsidiaries

Companies that are controlled by another company, known as the parent company, through ownership of a majority of voting stock.