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General Motors Owns 50% of the Voting Stock of Three

Question 7

Multiple Choice

General Motors owns 50% of the voting stock of three companies in China. General Motors most likely


A) Consolidates the entities because General Motors controls their decisions.
B) Reports the investments using the equity method, because General Motors owns between 20% and 50% of the entities' voting stock.
C) Consolidates the entities because General Motors is their largest customer.
D) Reports the investments as an investment without significant influence, because General Motors owns less than a majority of their voting stock.

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