The Acquisition of an Entity or Division May Be Performed

question 47

Multiple Choice

The acquisition of an entity or division may be performed through which of the following forms of consideration?

• A)Cash but not stock.
• B)Stock with no other contingent performance.
• C)Contingent performance with no further adjustment after the initial agreement.
• D)Cash,stock and/or contingencies.

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Definitions:

Import Quota

A government-imposed limit on the quantity or value of goods that can be imported into a country.

U.S. Imports

Goods and services purchased by residents of the United States from foreign firms and brought into the U.S.

U.S. Exports

Goods, services, and capital sent from the United States to other countries.

Government Budget Deficit

Occurs when a government's expenditures exceed its revenues within a specific fiscal period, requiring borrowing to finance the gap.