Which of the Following Is the Best Definition of a Control

question 178

Multiple Choice

Which of the following is the best definition of a control block?

• A) An interest controlling 50 percent of outstanding votes plus one; thereby it may decide the fate of the firm.
• B) Corporate takeover bid communicated to the shareholders by direct mail.
• C) A merger in which a new firm is created and both the acquired and acquiring firm cease to exist.
• D) The splitting up of a company into two or more companies.
• E) The distribution of shares in a subsidiary to existing parent company shareholders.

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Definitions:

Standard Cost Variances

The differences between the actual costs incurred and the standard costs for producing a good or service.

Cost Of Goods Sold

Directly attributable expenses in the making of products sold by a business, encompassing materials and labor.

Materials Quantity Variance

The variance between the real amount of materials consumed in the manufacturing process and the anticipated standard amount, measured at the standard expense.

Standard Hours

The predetermined amount of time expected to complete a task or produce a unit of product under normal conditions.