The First National Bank of Edmond had decided to purchase The First National Bank of Plano in Texas. The bank is interested in this purchase because The First National Bank of Plano is in financial distress and the First National Bank of Edmond thinks this is a cheap way to get a start in the large Texas market. The FDIC supports this acquisition because it won't have to make any insurance payouts. What motive for a merger does this most likely reflect?
A. Profit potential
B. Risk reduction
C. Rescue of failing institution
D. Tax and market positioning
E. Maximizing management welfare
C. Rescue of failing institution
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A change in accounting principle from one that is not generally accepted to one that is generally accepted should be treated as
A) an error and corrected by prior period adjustment. B) a change in accounting principle and the cumulative effect included in net income. C) a change in accounting principle and prior period financial statements are restated. D) a change in accounting principle and adjustments made prospectively.
According to the failing company doctrine, two or more smaller companies are allowed to merge to compete with a larger company even if they are highly profitable as smaller companies
Indicate whether the statement is true or false
Write the model that is suitable for this scenario
What will be an ideal response?
The first step in TOC methodology is to:
A) Identify the constraint. B) Exploit the constraint. C) Subordinate the system to the constraint. D) Elevate the constraint.