The Purchase of Substantially Less Than 100 Percent of a Business

question 29

Multiple Choice

The purchase of substantially less than 100 percent of a business is called a

• A)takeover.
• B)buy-in.
• C)spin-off.
• D)buyout.

---

Definitions:

Direct Labor

Labor costs directly attributed to the production of goods or the provision of services.

Manufacturing Overhead

Indirect costs related to manufacturing that cannot be directly traced to specific products, such as utilities and management salaries.

Work in Process Inventory

This inventory category includes goods that are partially completed in the production process but not yet ready for sale.

Total Cost

The sum of all expenses incurred in producing a product or providing a service.