In a Business Combination, the Excess of the Cost of the Purchase

question 53

Multiple Choice

In a business combination, the excess of the cost of the purchase over the fair value of the identifiable net assets purchased is

• A) other assets.
• B) indirect costs.
• C) goodwill.
• D) a bargain purchase.

---

Definitions:

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period.

Elastic

A term used in economics to describe a situation where the quantity demanded or supplied of a good or service is highly responsive to changes in its price.

Substitutes

Goods or services that can replace each other in use, where an increase in the price of one leads to an increase in demand for the other.

Industry Supply Curve

A graphical representation showing the relationship between the price of a good and the total output of that good supplied by an industry at various price levels.