If a Parent Company Pays More Than Book Value for a 100

question 11

True/False

If a parent company pays more than book value for a 100 percent owned subsidiary,goodwill could arise on the consolidated financial statements.

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Definitions:

Out-Dated Facilities

Out-dated facilities refer to buildings, equipment, or infrastructure that are old, obsolete, and no longer efficient or effective for their intended purpose.

Environmental Opportunities

Refers to circumstances in the external environment that an organization can exploit to its advantage, often related to sustainability, market trends, or regulatory changes.

New Technologies

Emerging or recently developed technological advancements, tools, or methods that potentially change existing practices or create new opportunities.

E-Business Strategy

A plan of action for leveraging digital technologies and Internet to conduct a company’s business processes, from procurement to customer service.