Company A wishes to acquire control of Company B as cheaply as possible. For economic reasons, a consultant recommended that Company A can do this through purchase of assets, rather than purchase of shares. Which of the following statements regarding the above scenario is correct?
A) Company A only needs to acquire control of Company B's fixed assets.
B) The consideration given by Company A must exceed 50% of the fair market value
of Company B's net assets.
C) Company A only needs to acquire control of Company B's net assets.
D) Company A must purchase all of Company B's assets and liabilities.
C) Company A only needs to acquire control of Company B's net assets.
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If the sale of ice cream and pizza are independent, then as ice cream sales decrease by 60 percent during the winter months, pizza sales will
A) increase by 60 percent. B) increase by 40 percent. C) decrease by 60 percent. D) decrease by 40 percent. E) be unrelated.
According to Table 8-3, the minimum cost is
A) 20500 B) 20000 C) 18950 D) 19625 E) 19400
The ________ Act makes it easier for veterans to find employment when they return from service.
A. Uniformed Services Employment and Reemployment B. Age Discrimination in Employment C. Workforce Investment D. Equal Employment Opportunity
Which of the following is not a characteristic of a fund as defined by GASB standards?
A. A fiscal entity. B. A self-balancing set of accounts. C. A reporting entity. D. An accounting entity.