Firms sometimes invest in the common stock of other entities in order to exert significant influence or control over the other entity. U.S. GAAP and IFRS assume that firms owning between _____ of the voting stock of another entity can exert significant influence
a. 10% and 40%
b. 15% and 45%
c. 20% and 50%
d. 25% and 55%
e. 30% and 60%
C
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You are comparing three companies that use different depreciation methods. Which of the following would help you the most in making a comparison of the companies?
a. The average earnings per share for the quarter. b. Prospective cash receipts. c. Claims to resources. d. Disclosure of accounting policies.
Once a solution to a problem is chosen, the next phase in the decision-making process involves
A. evaluating consequences. B. generating information. C. generating alternative solutions. D. implementing the decision. E. evaluating alternatives.
The traditional model of corporate governance was established in the 1919 Dodge v. Ford Motor Company decision that established all of the following EXCEPT _________.
a. corporations are made responsive to the rights and wishes of stakeholders. b. A business corporation is organized and carried on primarily for the profit of the stockholders. c. The powers of the directors are to be employed for that end. d. The discretion of directors is to be exercised in the choice of means to attain that end
Which of the following, if true, most strongly supports flextime as an attractive option for Shoreline's employees?
A) The salary levels for Shoreline employees do not include a provision for overtime pay. B) Most of the tasks Shoreline's employees do involve communicating by e-mail or voice mail with editors and clients, including many in Europe and Asia. C) Among employees who have to report for work at nine each morning, absenteeism and tardiness are problems. D) The office space is restricted, and by allowing more employees to use it at different times, the firm can defer finding a building with more space. E) The work is often so routine that employees appreciate taking long breaks to clear their heads.