With the Transfer of Services Within the Group

question 21

Multiple Choice

With the transfer of services within the group:
I made a change to the original question, as the original question is very similar to Q16.

• A) there will be an increase in deferred tax assets.
• B) the consolidation adjustments do not affect profit of the group.
• C) the group's profit equals service revenue less service expense.
• D) there will be an increase in income tax expense.

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Definitions:

Trade Name

The name under which a business operates and is known to the public, distinct from the business's legal name.

License

A permit from an authority to own or use something, do a particular thing, or carry on a trade.

Ownership of the Business

The legal state or condition of having control over a company or entity, including the rights to make decisions and enjoy the profits.

Franchisee

An individual or company that is granted the right by a franchisor to operate a business under the franchisor's trademark and business model.