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4 years ago

When a company holds between 20% and 50% of the outstanding stock of an investee, which ofthe following statements applies?

1 answer:

Ber [7]4 years ago

3 0

Answer: The correct answer is "b. The investor should use the equity method to account for its investment unless circumstancesindicate that it is unable to exercise "significant influence" over the investee."

Explanation: When a company holds between 20% and 50% of the outstanding stock of an investee, the investor should use the equity method to account for its investment unless circumstancesindicate that it is unable to exercise "significant influence" over the investee.

If the company owns between 20% and 50% of the shares in circulation of the controlled company, it can be considered that the company that owns the shares exerts significant influence on the controlled company, in this case if the opposite is not proven, You must apply the equity method.

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According to Dean Jarley, The EXCHANGE is a place in the college where _______ happen in order to create a culture of engagement

Drupady [299]

Answer:

Conversation

Explanation:

According to Dean Jarley, The EXCHANGE is a place in the college where conversation happen in order to create a culture of engagement.

Dean Jarley said that 'the idea behind The Exchange is simple' because education at its highest level happens when people are given the opportunity to interact, discuss and have a conversation with some other person who has brilliant ideas to share.

Furthermore, Dean Jarley believes that the more opportunities people have to engage in such conversations, the more they are likely to exchange brilliant ideas and the more learning will occur.

3 0

3 years ago

In attempting to solve the problems caused by a lowering of the price of oil, oil companies operating in the North Sea have take

goldfiish [28.3K]

Answer: which includes reducing employment, using new technology to be more efficient in pumping oil

Explanation: The question involved a brief explanation of the financial crisis oil companies in the North sea are passing through as a result of falling oil prices. The option I chose, I believe is the best arranged of the list of given options.

4 0

4 years ago

Before sending a résumé, you should always checked with the employer to see what operating system they use. please select the be

Gnesinka [82]

Answer:

This is true.

Explanation:

Edg. 2022

3 0

2 years ago

Suppose that when the price of ginger ale is $2 per bottle, firms can sell 4 million bottles. When the price of ginger ale is $3

lesantik [10]

Solution: The correct answer is option D

Explanation:

The following formula is applied for calculating elasticity of demand:

$\mathrm{e}=\left[\left(\mathrm{Q}_{2}-\mathrm{Q}_{1}\right) /\left\{\left(\mathrm{Q}_{1}+\mathrm{Q}_{2}\right) / 2\right\}\right] /\left[\left(\mathrm{P}_{2}-\mathrm{P}_{1}\right) /\left\{\left(\mathrm{P}_{1}+\mathrm{P}_{2}\right) / 2\right\}\right]$

Here, Q2 = 2 million

Q1 = 4 million

P2 = $3

P1 = $2

$\begin{array}{l}\mathrm{e}=[(2-4) /\{(4+2) / 2\}] /[(\$ 3-\$ 2) /\{(\$ 2+\$ 3) / 2\}] \\\mathrm{e}=[(-2) / 3] /[1 / 2.50]\end{array}$

e = - 1.67

Thus, the absolute value is 1.67.

The ginger ale is price elastic because the absolute value is higher than 1. An increase in price will decrease its total revenue. Thus, the following statement is true: (d) The demand for ginger ale is price elastic, so an increase in the price of ginger ale will decrease the total revenue of ginger ale producers.

5 0

3 years ago

You are considering an investment that will pay you and your heirs $5,000 at the end of each year forever. The price of the inve

Dmitry [639]

Answer:

Fair price of the insurance policy is $62,500.

Explanation:

We have given that an investment that will pay you and your heirs $5000

So the annual cash flow = $5,000

It is given that you can earn 8 % annually on your money

Required rate of return = 8%

We have to find the fair price for the investment

Price of this annuity $=\frac{5000}{0.08}=$62500$

Fair price for the investment is $62,500.

8 0

3 years ago