XYZ Buys a 24 Per Cent Share in ABC for $80

question 2

Multiple Choice

XYZ buys a 24 per cent share in ABC for $80 million. ABC's total net profit is $50 million and it pays $4 million in dividends to XYZ. Using the cost method, what would be the revenue and investment amounts at year-end for this investment?

• A) $4 million and $80 million
• B) $4 million and $84 million
• C) $12 million and $80 million
• D) $12 million and $92 million

---

Definitions:

Workflows

The sequence of processes through which a piece of work passes from initiation to completion in a business environment.

Strategic Objectives

Specific, measurable goals that organizations set to guide their strategic plans and actions toward achieving their broader missions and visions.

Process Reengineering

A management strategy focusing on the analysis and design of workflows and processes within an organization to dramatically improve performance.

Increasing Efficiency

The process of improving the ability to achieve a higher output with the same or fewer resources, often through the optimization of processes.