Which of the Following Is Not an Advantage of the Parent

question 7

Multiple Choice

Which of the following is not an advantage of the parent issuing shares of stock in exchange for the subsidiary common shares being acquired?

• A)​It is not necessary to determine the fair values of the subsidiary's net assets.
• B)​It may allow the subsidiary's shareholders to have a tax free exchange.
• C)​It avoids the depletion of cash.
• D)​If the parent is publicly held, the share price is readily determinable.

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Definitions:

Involuntary Turnover

The process where employees leave a company due to reasons outside their control, such as layoffs or terminations by the employer.

Workplace Violence

Any act or threat of physical violence, harassment, intimidation, or other threatening disruptive behavior that occurs at the work site.

Interactional Justice

Refers to the perceived fairness of the interpersonal treatment individuals receive from decision-makers, including respect and propriety in communication.

Benchmarking

The practice of comparing business processes and performance metrics to industry bests and best practices from other companies.