Genetic Drift

question 26

Multiple Choice

Genetic drift

• A) always opposes natural selection.
• B) is more significant in small populations.
• C) is the result of gene flow.
• D) depends on the fitness of the alleles.
• E) none of the above

Analyze the effects of stock issue costs on company finances.

Identify and explain the accounting treatments for contingent consideration in acquisitions.

Assess the financial implications of a bargain purchase on acquisition accounting.

Understand the principles and applications of the equity method of accounting.

---

Definitions:

Tender Offer

A proposal made publicly by an individual or entity to buy shares from shareholders of a publicly traded company at a specified price for a limited time.

Acquisition Cost

The total cost incurred to acquire an asset, including the purchase price and all related expenses.

Minority Shareholders

Shareholders who own less than 50% of a company's shares and, therefore, do not have a controlling interest in company decisions.

Exclusionary Self-tender

A corporate strategy in which a company offers to purchase its own shares from shareholders, typically at a premium, as a means to reduce the number of outstanding shares and thus potentially increase the share price.