The Amount of Productive Capacity Available Over and Above the Productive

question 81

True/False

The amount of productive capacity available over and above the productive capacity employed to meet customer demand in the current period is the unused capacity.

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Definitions:

Acquisition

The process by which one company takes over another company either by purchasing its assets or its stock.

Goodwill

An intangible asset representing the excess of acquisition cost over the fair value of identifiable net assets acquired in a business combination.

Acquiring Company

A company that purchases most or all of another company's shares to gain control of that company.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its tangible and identifiable intangible assets.