A New Subsidiary Is Being Formed

question 2

Multiple Choice

A new subsidiary is being formed.The parent company purchased 70% of the shares for $20 per share.The remaining shares were sold to a variety of outside interests for an average of $18 per share.The consolidated statements will show

• A)​a gain.
• B)​a loss.
• C)​only cash and related equity.
• D)​goodwill.

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Definitions:

Strategy Maps

Visual representations that illustrate the key objectives and their relationships within an organization's strategy.

Measure Maps

Measurement maps, often referred to in the context of geographical information systems (GIS), involve tools or methods for analyzing and representing spatial data through maps.

Strategic Objectives

Long-term goals that an organization aims to achieve to realize its vision, typically involving significant milestones or targets.

Performance Metrics

Metrics employed to evaluate, benchmark, and monitor output or achievements over a period.