Which Statement Is Not Correct

question 5

Multiple Choice

Which statement is not correct?

• A)Goodwill equals the purchase price less the fair value of net assets acquired.
• B)Intangible assets can be purchased or internally created.
• C)Economic goodwill equals accounting goodwill and can be created by branding.
• D)Intangible assets are identifiable assets without physical substance.

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Definitions:

Internal Growth Rate

The maximum growth rate a firm can achieve without external financing, based on reinvestment of its own earnings.

Financial Planning

The process of estimating the capital required and determining its competition. It is the process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise.

Financing

The process of supplying capital for company operations, acquisitions, or investments.

Desired Level of Growth

The desired level of growth is a target set by a business or organization for the expansion of its operations, sales, or market share over a specific period.