Cherryhill and Hace Had Been Partners for Several Years, and They

question 16

Multiple Choice

Cherryhill and Hace had been partners for several years, and they decided to admit Quincy to the partnership. The accountant for the partnership believed that the dissolved partnership and the newly formed partnership were two separate entities. What method would the accountant have used for recording the admission of Quincy to the partnership?

• A) the bonus method.
• B) the equity method.
• C) the goodwill method.
• D) the proportionate method.
• E) the cost method.

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Definitions:

Global and Local

A concept or strategy that recognizes the need to think globally while acting locally, balancing universal principles with cultural specifics.

Meganational Strategy

A business strategy that involves operating in multiple countries across several geographic regions, focusing on leveraging global efficiencies and synergies.

Integrations

This refers to the process of combining or coordinating different entities, systems, or processes to function together more effectively.

Global and Local Advantages

The benefits that companies gain by leveraging both global standardization to achieve efficiency and local adaptation to meet specific market needs.