A Motivation for Current US GAAP Was a Major Concern

question 1

Multiple Choice

A motivation for current US GAAP was a major concern over the treatment of goodwill by the British in comparison with the Americans is that

• A) the British may be able to offer more for an acquisition than an American firm.
• B) British income tends to be lower than U.S. income.
• C) British firms would have a more difficult time acquiring firms that have brand names.
• D) British firms are able to pay more for new greenfield (as opposed to acquisition) investments than are U.S. firms.

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Definitions:

Ego

In Freud’s theory, the logical, rational, largely conscious system of personality, which operates according to the reality principle.

Psychic Energy

A concept in psychoanalytic theory referring to the force or drive within individuals that motivates them to seek pleasure and avoid pain.

Id

In psychoanalytic theory, the part of the mind in which innate instinctive impulses and primary processes are manifest.

Libido

A term often used in psychoanalytic theory to denote the energy of the sexual drive as a component of the life instinct.