When a Parent Purchases a Portion of the Newly Issued

question 18

Multiple Choice

When a parent purchases a portion of the newly issued stock of its subsidiary and the ownership interest increases,

• A)​any difference between the change in equity and the price paid is the excess of cost or book value attributable to the new block.
• B)​any difference between the change in equity and the price paid is viewed as a gain or loss on the sale of an interest.
• C)​any difference between the change in equity and the price paid is viewed as a change in paid-in capital or retained earnings.
• D)​there will be no adjustment.

Recognize and differentiate the purpose and application of different review and control questions related to improvement before and after completing a task or project.

Understand the significance of organizational culture, norms, and practices in the management of control systems (e.g., clan control).

Understand the basics and applications of project management tools, such as Gantt charts and CPM/PERT diagrams.

Comprehend the function and utility of financial ratios in business, including profitability, liquidity, and leverage ratios.

---

Definitions:

Workflow

The sequence of processes through which a piece of work passes from initiation to completion.

Authority Relationships

These are the frameworks within which power, responsibilities, and duties are distributed among individuals or groups, typically in an organizational setting.

Role-Centered

Focusing on the responsibilities and expectations associated with a particular social or professional position.

Lewin's Model

A change management model developed by Kurt Lewin that involves three steps: unfreezing, changing, and refreezing, to facilitate effective change.