Sya Ltd Acquired All the Assets and Liabilities of Littman Ltd

question 38

Multiple Choice

Sya Ltd. acquired all the assets and liabilities of Littman Ltd. by issuing common shares to Littman. After this transaction, Littman owned 30% of Sya's outstanding shares. Which of the following statements is true?

• A)Littman is now a subsidiary of Sya.
• B)This is an intercorporate investment for Sya.
• C)Sya does not need to prepare consolidated financial statements.
• D)Sya should use the equity method to reflect its investment in Littman.

Understand the concept of return on investment and how it is calculated.

Determine the investment turnover and understand its implications for business performance.

Calculate and interpret profit margin for divisions or companies.

Identify the responsibilities and performance measures of investment centers.

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Definitions:

Status Attainment Model

A sociological perspective that explains an individual's position within society based on educational achievement, occupational status, and other factors.

Blau and Duncan

Sociologists who developed the Blau-Duncan model, which outlines the structural factors influencing occupational mobility and stratification in society.

Subsequent Research

Investigations or studies conducted after a preliminary study, to further explore a subject or hypothesis.

Poverty Rate

The percentage of the population that lives below the national poverty line, indicating the proportion of individuals or households with income levels insufficient to meet basic needs.