As It Applies to an Acquisition,the Term Goodwill Is Defined

question 33

Multiple Choice

As it applies to an acquisition,the term goodwill is defined as the difference between the

• A)purchase price and the book value of the target firm.
• B)purchase price and the estimated fair market value of the net assets acquired.
• C)fair market value of the net assets acquired and the target firm's equity.
• D)market value and the book value of the target firm.
• E)market value and book value of the target firm's total assets.

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Definitions:

Haploid

Describes a cell or organism that contains a single set of chromosomes, typical of gametes in sexually reproducing organisms.

Gametophyte

The sexual phase in the life cycle of plants and algae that produces gametes, or sex cells.

Liverworts

Non-vascular plants belonging to the division Marchantiophyta, characterized by flat, leaf-like structures on their surface and found in moist, shaded environments.

Thallus

(Pl., thalli) The simple body of an alga, fungus, or nonvascular plant that lacks roots, stems, or leaves (e.g., a liverwort thallus or a lichen thallus).