Which One of the Following Is NOT True About Goodwill

question 6

Multiple Choice

Which one of the following is NOT true about goodwill?

• A) It is an intangible asset.
• B) It represents the value of all unrecorded assets acquired in a merger.
• C) It equals the premium paid over the fair market value of the assets acquired in a merger.
• D) When goodwill appears on a company's balance sheet, it reduces the company's net worth by that amount.

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Theory X

A management theory assuming employees are inherently lazy and will avoid work if they can, necessitating a controlling management style.

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