For Private Enterprises That Have Acquired Goodwill in a Business

question 5

Multiple Choice

For private enterprises that have acquired goodwill in a business combination, how often should goodwill be tested for impairment?

• A)At least once a year
• B)At least once every two years
• C)Whenever the parent company deems it necessary
• D)Whenever there is a change in circumstances

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Definitions:

Computer Program

A computer program is a set of instructions that a computer follows to perform specific tasks or operations, written in a programming language.

Indemnification

The act of compensating for loss or damage, often seen in contracts where one party agrees to protect the other against certain future claims or liabilities.

Negligently

Acting with a lack of proper care or attention to duties, resulting in harm or damage to others.

Gratuitous Basis

A situation where goods, services, or assets are given without receiving payment or consideration in return.