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:

Resource Demand

Refers to the total amount of goods and services that businesses require to produce their own goods and services.

MRP

An acronym for Material Requirements Planning, a system used for production planning and inventory control, or alternatively for Marginal Revenue Product, the extra revenue generated from employing one more unit of a resource.

Wage Rate

The fixed amount of compensation paid to employees for their labor, typically expressed as a rate per hour.

Derived Demand

Defines the demand for a good or service that results from the demand for another good or service.