15. On what basis should they be valued, and how should they be shown on the balance sheet?
Chapter XV
1. State the characteristics of permanent investments.
2. In what three ways may a permanent or fixed investment be effected so as to act as an aid in the operation of any business?
3. What is the chief problem in valuing those investments which aid operation?
4. When may the “consolidated balance sheet” be used to advantage by holding companies?
5. Discuss the factors involved in valuing claims against subsidiary concerns on account of advances.
6. Under what conditions would it be advisable to value partial or minor holdings at cost?
7. On what basis should investments producing no income be valued?
8. Explain the influence of interest rates upon the valuation of bonds.