When a Parent Acquires the Preferred Stock of a Subsidiary,there

question 30

Multiple Choice

When a parent acquires the preferred stock of a subsidiary,there will be a constructive retirement and

• A)any difference paid above the book value of the preferred stock reduces the parent's additional paid-in capital.
• B)any difference paid above the book value of the preferred stock reduces the subsidiary's retained earnings.
• C)any difference paid above the book value of the preferred stock increases the parent's additional paid-in capital.
• D)any difference paid above the book value of the preferred stock increases the parent's retained earnings.

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Definitions:

Internal Recruitment

The process of filling job vacancies within a company by promoting or transferring existing employees, rather than hiring new ones from outside.

HR Planning

The process of forecasting an organization's future human resource needs and determining how to meet those needs.

Talent Bench

Talent Bench refers to a pool of high-potential employees within an organization who are ready to fill key positions as they become available.

External Hiring

The process of filling job vacancies within a company by recruiting candidates from outside the organization, as opposed to promoting existing employees.