Prime Industries Acquired a 70 Percent Interest in Suburbia Company

question 28

Multiple Choice

Prime Industries acquired a 70 percent interest in Suburbia Company by purchasing 14,000 of its 20,000 outstanding shares of common stock at book value of $210,000 on January 1, 2016. Suburbia reported net income in 2016 of $90,000 and in 2017 of $120,000 earned evenly throughout the respective years. Prime received $24,000 dividends from Suburbia in 2016 and $36,000 in 2017. Prime uses the equity method to record its investment. The balance of Prime's Investment in Suburbia account at December 31, 2017 is:

• A) $210,000
• B) $285,000
• C) $297,000
• D) $315,000

Identify and explain the skills required by employees to support differentiation and low-cost strategies.

Describe the significance of strategic planning for organizations and its impact on competitive success.

Illustrate how Human Resource Management (HRM) strategies are designed to align with business strategies.

Recognize the importance of training and developing employees to enhance their skills and attitudes.

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Definitions:

Member Visits

Occasions when individuals go to see or spend time at a place, often referring to visits to a club, organization, or group they belong to.

Undoing Hypothesis

A theoretical concept suggesting that individuals can nullify a psychological or moral impact of a negative action by engaging in another action that counters the first.

Shared Anxiety

Anxiety experienced collectively among a group of individuals, often due to a common concern or threat.

Stressor

Any event or situation that causes stress, triggering a physical, mental, or emotional response.