Company P Acquired 80% of the Outstanding Common Stock of the Company

question 44

Multiple Choice

Company P acquired 80% of the outstanding common stock of the Company S by issuing common stock with a market value of $550,000. The balance sheet of Company S was as follows on the acquisition date: The market values were as follows: Inventory, $130,000; Land, $120,000; Building, $400,000. What is the amount that will appear as Cash Provided (Used) by Investing Activities on the consolidated statement of cash flows, as a result of this purchase?

• A) $600,000
• B) $500,000
• C) $50,000
• D) $0

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Definitions:

Organizational Culture

Pertains to the collective ideals, convictions, and standards that affect employees' perceptions, emotions, and actions in a workplace setting.

Resistance To Change

The reluctance or refusal to accept new ideas or alterations to the status quo, often seen in organizational or personal contexts.

Organizational Culture

A system of shared assumptions, values, and beliefs which governs how people behave in organizations, significantly influencing employee morale and performance.

Subcultures

Groups within a larger culture that have their own distinct values, norms, and practices, which differentiate them from the broader culture.