Assume That Botkins Acquired Volkerson on January 1, 2017 and That

question 59

Multiple Choice

Assume that Botkins acquired Volkerson on January 1, 2017 and that Volkerson maintains a separate corporate existence.At what amount did Botkins record the investment in Volkerson?

• A) $ 56,000.
• B) $182,000.
• C) $209,000.
• D) $261,000.
• E) $312,000.

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Definitions:

Decentralization

The distribution of decision-making powers away from a central authority within an organization to lower-level personnel or departments.

Standardization

The degree to which the range of actions in a job or series of jobs is limited.

Coordination

The set of mechanisms used in an organization to link the actions of its subunits into a consistent pattern.

Functional Specialization

The division of work into specialized tasks or roles to increase efficiency and expertise.