What Is Meant by a "Basket Purchase"? What Method Is

question 151

Essay

What is meant by a "basket purchase"? What method is commonly used to determine the cost of individual assets?

---

Definitions:

Cumulative Voting

A system of voting for directors of a corporation in which shareholders can concentrate their votes on one candidate, rather than having to distribute them equally among candidates.

Majority Shareholder

An individual or entity that owns more than half of a company's outstanding shares, giving them controlling interest.

Board of Directors

A group of elected or appointed members who jointly oversee the activities of a company or organization.

Voting Trust

A type of shareholder voting arrangement by which shareholders transfer their voting rights to a voting trustee.