Select True (T) or False (F) for Each of the Following

question 76

Essay

Select True (T) or False (F) for each of the following statements:
_____ 1. A parent will recognize a gain or loss if it sells a portion of its investment in a subsidiary and maintains control after the sale.
_____ 2. A parent sells a portion of its investment in a subsidiary and no longer maintains control. This sale of shares represents a remeasurement event for the investee.
_____ 3. International financial reporting standards (IFRS) allow an option to value the non-controlling interest with goodwill or to value the non-controlling interest without goodwill.
_____ 4. Consolidated net income represents the combined net income of the parent and subsidiary after subtracting the non-controlling interest in the net income of the subsidiary.
_____ 5. The total acquisition-date fair value of an acquired firm is the sum of the fair value of the controlling interest and the fair value of the non-controlling interest.
_____ 6. When control of a subsidiary is acquired on a date other than the first day of a fiscal year, excess amortization expenses are pro-rated to include only the post-acquisition period.
_____ 7. For a mid-year acquisition following an equity method investment of the same company, the consolidated income statement will report consolidated revenues and expenses for the entire year.
_____ 8. In a step acquisition where the parent previously held a non-controlling interest in the acquired firm, the parent remeasures the prior interest to fair value.
_____ 9. When a parent has control over a subsidiary with less than 100 percent ownership, and thereafter increases its ownership, the parent remeasures the prior interest to fair value.

Distinguish between business models, business plans, and their respective purposes and structures.

Identify the key elements involved in the infrastructure of a business model.

Appreciate the importance of customer segmentation and targeted marketing in business strategy.

Understand the concept and importance of financial viability within a business model.

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Definitions:

Protein Degradation

The process by which proteins are broken down into their amino acid components, often regulated by cellular mechanisms for metabolism and homeostasis.

CAP

Catabolite Activator Protein, a regulatory protein in bacteria that helps facilitate the transcription of genes in response to the presence of certain sugars.

Lac Operon

A gene regulatory mechanism in bacteria that controls the metabolism of lactose.

Rate of Transcription

The speed at which RNA polymerase produces RNA molecules from a DNA template, affecting gene expression.