Goodwill Occurs When a Parent Company

question 16

Multiple Choice

Goodwill occurs when a parent company:

• A)pays less to acquire a subsidiary company than the market value of the subsidiary's net assets.
• B)pays less to acquire a subsidiary company than the book value of the subsidiary's net assets.
• C)pays more to acquire a subsidiary company than the market value of the subsidiary's net assets.
• D)pays more to acquire a subsidiary company than the book value of the subsidiary's net assets.

---

Definitions:

Evolutionary Psychology

Application of Darwinian principles of natural selection and survival of the fittest to individual behavior.

Cognitive Approach

A psychological perspective that focuses on how people think, understand, and know about the world, emphasizing mental functions such as learning, memory, perception, and problem-solving.

Macrosystem

In ecological systems theory, the broader cultural context that shapes an individual's development, including socioeconomic status, ethnicity, and heritage.

Ecological Approach

A perspective or methodology that considers all aspects of the environment, including physical, biological, and social factors, when examining problems or behaviors.