What is a noncontrolling interest and what does it represent in the income statement?
What will be an ideal response?
Answer: There is a noncontrolling interest when one company controls another company (e.g., a subsidiary), but owns less than 100% of its voting shares. The controlling company adds all of the subsidiary's income to its own, because it controls the subsidiary's ability to generate income. However, because it does not own 100% of the subsidiary, the controlling company must identify the amount of the income that is attributable to noncontrolling owners. The noncontrolling interest line item on the income statement represents the income attributable to the portion of a subsidiary owned by others. The portion of income (loss) attributed to the noncontrolling interest is deducted (added) on the income statement to arrive at income attributed to the controlling interest.
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An Asian option is a term used to describe which of the following
A. An option where the payoff depends on whether a barrier is hit B. An option where the payoff depends on the average value of a variable over a period of time C. An option that trades on an exchange in the Far East D. Any option with a nonstandard payoff
Organizations that typically provide an array of services to start-up companies along with a small amount of funding are referred to as:
A) angel investors. B) crowdfunders. C) incubators. D) venture capital investors.