Acquisition of Greater Than 20% of the Outstanding Stock of a Company

question 108

Multiple Choice

Acquisition of greater than 20% of the outstanding stock of a company normally suggests that the investor should use the

• A) consolidation method.
• B) equity method.
• C) fair-value method.
• D) straight-line method.

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Definitions:

Production Process

The method or series of actions taken to manufacture, create, or produce goods and services.

Basic Scientific Research

Fundamental investigations aimed at acquiring new knowledge without a particular application or use in mind.

Commercially Viable

Describes a product, service, or business that can generate enough revenue to cover its costs and yield a profit.

Federal Law

Legislation passed by the national government of the United States that applies throughout the country.