The Gramm-Leach-Biley Act

question 60

Multiple Choice

The Gramm-Leach-Biley Act

• A) does not allows business combinations between commercial banks, investment banks and insurance companies.
• B) allows business combinations between commercial banks and investment banks, but not insurance companies.
• C) allows business combinations between commercial banks, investment banks and insurance companies.
• D) was signed during the Great Depression because of the financial crisis.

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Definitions:

Goodwill

The intangible asset that arises when a company acquires another for a price higher than the fair value of its net identifiable assets.

Net Assets

The difference between total assets and total liabilities on a company's balance sheet, representing the owner's equity.

Shareholders' Point of View

The perspective of the owners of equity in a company, focusing on returns on investment, risk management, and the strategic direction of the company.

Bargain Purchase

A scenario in which a company acquires another company for a price less than the fair market value of its net assets.