Firm a Acquires Firm B When Firm B Has a Book

question 68

Multiple Choice

Firm A acquires firm B when firm B has a book value of assets of $155 million and a book value of liabilities of $35 million. Firm A actually pays $175 million for firm B. This purchase would result in goodwill for firm A equal to ________.

• A) $175 million
• B) $155 million
• C) $120 million
• D) $55 million

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Definitions:

Lewin's Model

A change management model proposing that successful change involves unfreezing, changing, and refreezing to embed new practices within an organization.

Change Process

The sequence of stages involved in moving from a current state to a desired future state.

Crises

Significant and often sudden adverse events that can disrupt an organization or society, requiring urgent and effective responses.

Resistance

Overt or covert failure by organizational members to support a change effort.