Answer the following statement(s) true (T) or false (F)
1. In a stock acquisition, the acquiring corporation becomes a subsidiary of the target corporation.
2. The purchasers in an asset acquisition will generally not be held liable for undisclosed liabilities and obligations of the target
corporation stemming from prior transactions.
3. In a stock purchase agreement, it is not necessary to identify in detail the exact assets and liabilities of the selling corporation.
4. In states following the Model Business Corporation Act, the shareholders of a corporation need not approve the restatement of the articles of incorporation if no amendment to provisions of the articles is included.
1. FALSE
2. TRUE
3. TRUE
4. TRUE
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Maryland Novelties Company produces and sells souvenir products. Monthly income statements for two activity levels are provided below: Unit volumes20,000 units 30,000 unitsRevenue $150,000 $225,000 Less cost of goods sold 60,000 90,000 Gross margin $90,000 $135,000 Less operating expenses Salaries and commissions 20,000 25,000 Advertising expenses 30,000 30,000 Administrative expenses 12,500 12,500 Total operating expenses 62,500 67,500 Net income $27,500 $67,500 Required: 1) Identify the mixed expense(s).2) Use the high-low method to separate the mixed costs into variable and fixed components.3) Prepare a contribution margin income statement at the
20,000-unit level. What will be an ideal response?
Which of the following is classified as a cash inflow from financing activities?
a. Cash received from re-issuance of treasury stock held by the company b. Cash received from the sale of stock held as a long-term investment c. Cash received as dividends on stock held as a long-term investment d. Cash received from the sale of land
The production era continued until consumer demand could not keep up with the growth in production and new strategies were needed to maximize success.
Answer the following statement true (T) or false (F)
The Food and Drug Administration does not have the authority to directly recall any food products that it suspects are tainted but must rely on the producers to recall items
a. True b. False Indicate whether the statement is true or false