In the terminology suggested by the FASB, which of the following terms refers to the company whose stockholders as a group end up with control of the voting stock of the other company entering into the business combination?
a. Parent
b. Subsidiary
c. Combinee
d. Combinor
ANSWER: D
You might also like to view...
Which of the following results from out-of-control con?icts?
A) team building B) problem solving C) increased productivity D) damaged relationships
Business buyers often select suppliers who also buy from them
Indicate whether the statement is true or false
Plum Corporation issues $400,000 of 7 percent, five-year bonds on January 1, 20x5, when the market rate of interest is 8 percent. The bond indenture states that interest is to be paid on January 1 and July 1 of each year. The entry to record the issuance includes
A) a credit to Cash. B) a debit to Bonds Payable. C) a debit to Unamortized Bond Discount. D) All of these choices.
In which of the following industries is the going-rate pricing approach most often used?
A) jewelry B) automobiles C) airlines D) mobile phones