Establishing Goodwill Is More Likely to Be Necessary in the Introduction

question 18

True/False

Establishing goodwill is more likely to be necessary in the introduction oan informative speech than in the introduction oa persuasive speech.

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Definitions:

Acquisition Method

An accounting technique used to consolidate the financial statements of two companies when one acquires the other.

Subsidiary's Fair Value

The estimated market value of a subsidiary company if its assets were to be sold or the company were to be acquired as a whole.

Goodwill

A non-physical asset that is recognized when one company purchases another at a price higher than the sum of the net value of its identifiable assets.

Acquisition Method

An approach in accounting for business combinations where the acquiring entity is treated as having purchased the net assets of the acquiree.