An investor is considered to have substantial influence over an investee if they possess between 20% and 50% of the voting shares.
Equity accounting is used to record and account for equity investments made by a firm when it holds 20% or less of the voting shares of another company.
According to the number of shares it owns in the investee company, the investor records the investee's earnings in its accounts.
In other words, the initial investment grows in proportion to the earnings earned.
The investee is a subsidiary of the investor since it has the power to control influence if it holds more than 50% of the voting shares.
Find out more about voting stock
brainly.com/question/14821403
#SPJ4
Answer:
d. Ken and Paul start a graphic design business together. When Ken fails to deliver on a contract with a customer, Ken and Paul are held equally responsible when the customer sues for damages.
Explanation:
A general partnership is one where more than two people are involved in the running of a business and each bears an unlimited liability in the obligations of the business.
The partners share profit and losses from the business activities.
The scenario where Ken fails to deliver on a contract with a customer, Ken and Paul are held equally responsible when the customer sues for damages. Is a perfect example of a general partnership.
Both partners share in the loss that results from business activity.
Answer:
Annual deposit= $37,714.37
Explanation:
Giving the following information:
The villa costs $500,000 today, and housing prices in Mexico are expected to increase by 6% per year. Manny and Irene want to make fifteen equal annual payments into an account, starting today, so there will be enough money to purchase the villa in fifteen years.
The account earns 10% per year.
First, we need to calculate the final value of the house with the following formula.
FV= PV*(1+i)^n
FV= 500,000*(1.06^15)=$1,198,279.1
Now, we can calculate the annual payments required:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (1,198,279.1*0.10)/[(1.10^15)-1]
A= $37,714.37
Answer:
Quality control
Explanation:
Six Sigma is a quality business management strategy which helps business organizations to improve the quality of processes, products and services by discovering and eliminating defects, variations or errors. It is a strategic business concept that was developed in 1986 by Motorola.
Under the six sigma approach, any process that doesn't provide customer satisfaction or causes challenges in an organisation's process should be eliminated from the system in order to produce quality products and services. It allows only 3.4 defective features for every million opportunities and as such expects processes to be defect free 99.99966 percent of the time.
Generally, there are two (2) main methods of achieving the six sigma approach;
1. DMAIC: define, measure, analyze, improve and control.
2. DMADV: define, measure, analyze, design and verify.
Hence, a pre-concert rehearsal is an example of quality control because the participants or team members are made to practice their routines so as to master them and prevent mistakes on the day of the concert. Thus, a pre-concert is aimed at getting the best out of a team in order to deliver a quality performance to the audience.
B. <span>Since the new branch is adding expenses, Sam's net profit margin will go down.</span>
