Efficient Auto Parts Is a Wholesale Distributor

question 62

Multiple Choice

Efficient Auto Parts is a wholesale distributor.They purchase auto parts in bulk from manufacturers and sell in smaller quantities to regional retail outlets.They understand that carrying excess inventory can be expensive.On the other hand,running out of inventory can lead to lost business.Therefore,they have created a network that their suppliers can log into to check inventory levels for the parts they sell.When inventory levels reach an agreed upon level,the supplier automatically sends more to the distributor,with all the documentation being handled electronically.This system is most likely part of what kind of network?

• A)Intranet
• B)Extranet
• C)VPN
• D)Socialnet

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Definitions:

Subsidiary

A subsidiary is a company that is controlled by another company, referred to as the parent company, through ownership of more than half of its voting stock.

Full Goodwill Method

An accounting approach where the total fair value of goodwill is recorded in the books, even if the parent company does not own 100% of a subsidiary.

Non-controlling Interest

The portion of equity ownership in a subsidiary not held by the parent company, reflecting minority shareholders' stake in the subsidiary's net assets.

Fair Value

An estimate of the price at which an asset or liability could be exchanged between willing parties in an arm's length transaction.