Which of the Following Is Used to Describe the Acquisition

question 32

Multiple Choice

Which of the following is used to describe the acquisition of one company by another?

• A)Monopoly
• B)Merger
• C)Dissolution
• D)Tying

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Definitions:

Effective Tax Rate

The average percentage of their total income that individuals or corporations actually pay in taxes.

Consolidated Statement

Financial reports that aggregate the financial position, results of operations, and cash flows of a parent company and its subsidiaries into one document.

Acquisition Differential

The difference between the fair value of an acquired company's identifiable net assets and the actual cost to purchase that company.

Goodwill Impairment

A charge that occurs if the value of goodwill on a company's balance sheet exceeds the tested fair market value.