Which of the Following Statements Is False Regarding Multiple Acquisitions

question 76

Multiple Choice

Which of the following statements is false regarding multiple acquisitions of a subsidiary's existing common stock?

• A) The parent recognizes a larger percent of subsidiary income.
• B) A step acquisition resulting in control may result in a parent recognizing a gain on revaluation.
• C) The book value of the subsidiary will increase.
• D) The parent's percent ownership in subsidiary will increase.
• E) Noncontrolling interest in subsidiary's net income will decrease.

---

Definitions:

Rational Commitment

The logical and calculated decision by an individual to remain dedicated to an organization or cause based on the benefits and costs analysis.

Affective Commitment

An employee's emotional attachment to, identification with, and involvement in a particular organization.

Positive Feeling

A general sense of contentment, happiness, or optimism that can positively affect one's outlook and behavior.

Employee Engagement

The level of an employee's emotional investment and commitment to their organization, influencing their willingness to put in discretionary effort at work.