Under Which Set of Circumstances Would It Not Be Appropriate

question 27

Multiple Choice

Under which set of circumstances would it not be appropriate to assume the value the noncontrolling shares is the same as the controlling shares?

• A)The acquisition is for less than 100% of the subsidiary.
• B)The fair value of the of the noncontrolling shares can be inferred from the value implied by the acquisition price.
• C)Active market prices for shares not obtained by the acquirer imply a different value.
• D)The amount of the "control premium" cannot be determined .

---

Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.