When Is Goodwill Created

question 27

Multiple Choice

When is goodwill created?

• A)purchase price exceeds the net identifiable assets
• B)Acquirer's P/E is higher than target's
• C)Purchase price exceeds the net identifiable assets
• D)Acquirer's P/E is lower than target's

---

Definitions:

Unfair Advantage

An advantage gained by a party through dishonest or unethical means, leading to an imbalance in competitive situations.

Securities Exchange Act Of 1934

A U.S. law regulating the trading of securities (stocks, bonds, etc.) to protect investors against malpractices.

Periodic Disclosures

Regularly scheduled communications from a company or organization, providing updates on financial performance, operations, and other significant developments.

Publicly Held Companies

Corporations whose shares are publicly traded on stock exchanges, allowing for ownership by the general public.