When a Parent Company Owns 100 Percent of the Outstanding

question 166

Multiple Choice

When a parent company owns 100 percent of the outstanding stock of a subsidiary,Goodwill from Consolidation will appear on the consolidated balance sheet when the

• A) cost of the parent's investment exceeds the book value and the fair value of the investee's net identifiable assets.
• B) cost of the parent's investment exceeds the book value of the parent's net assets.
• C) book value of the parent's net assets exceeds the fair value of the parent's net assets.
• D) fair value of the investee's net identifiable assets exceeds the cost of the parent's investment.

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Definitions:

Situational Demands

The specific needs, challenges, or requirements presented by particular circumstances or environments at a given time.

Organisational Form

The structure and design of an organization, which determines its mode of operation and influences its efficiency and effectiveness.

Organisational Structure

Organisational structure is a system of tasks, workflows, reporting relationships and communication links.

Communication Channels

The mediums through which information is transmitted from a sender to a receiver, such as emails, phone calls, and social media.