How does ‘Nature of business’ affect the value of goodwill of a firm ?

Q: What is the doctrine of continuity of business enterprise and continuity of proprietary interest?

A: A merger or acquisition refers to the transactions involving transfer or combination of ownership…

Q: Is it true that the book value of a company equals the value or it's assets according to their…

A: Book value of the firm is the value of its liquidating i.e the total amount when its assets are sold…

Q: a. Sales Maximization b. Asset Maximization c. Profit Maximization d. Wealth Maximization

A: Time value of money is a technique used to find the worth of money today, but that money is to be…

Q: How can processes, policies and controls related to a company’s finance and investment cycle affect…

A: An internal control are those rules, policies, control and procedure that is implemented by the…

Q: what determines the market value of a company are not profits, per se, but rather, cash flows?

A: Market value of a company : In simple words, the market value of a company refers to the value of a…

Q: What are the sources or capital available to business? Why is the capital mix of a company so…

A: The sources of capital available to business: Equity: A company's capital is raised by issuing…

Q: How do the activities of a company benefit society?

A: Even though a company have a profit motive, a cost can benefit society in many ways.

Q: What do the return on assets measure? The liquidity of a firm's current assets Management's…

A: >Ratio analysis is the study of financial statement data based on certain ratios. >ratio…

Q: What is matching concept? Why should a business concern follow this concept? Discuss.

A: Matching concept: According to this principle, the expense should be recognized when it is actually…

Q: Can organizations survive on a specific economic view as they become involved in international…

A: International business refers to any cross-border exchanges of products, services, or resources…

Q: 1. What problem arises as a result of the separation of ownership and management of a firm? Advocacy…

A: Since you have asked us multiple questions, we will solve the first question for you. If you want…

Q: corporate

A: SOLUTION:- Non -Operating Assets -There are certain asset which do not contribute to the day to day…

Q: What is capital structure of a company and explain why it is important?

A: The capital structure of a company and explain why is important will be explained:

Q: Which of the following statements is true about goodwill? а. Goodwill may be recorded when the fair…

A: SOLUTION GOODWILL IS AN INTANGIBLE ASSET THAT IS ASSOCIATED WITH THE PURCHASE OF ONE COMPANY BY…

Q: How much is the goodwill on the business combination, assuming both companies qualified as SME?

A: Pearls corporation has acquired net identifiable assets of Start up Company. The net assets and net…

Q: What is a company's capital structure and why is it important?

A: Answer: Company consists of assets, liabilities and equity in the financials.  Company capital…

Q: How do i calculate market valuation in a company?

A: The term market valuation of a company refers to the ascertainment of the value of the company as…

Q: How can we n determine the net income (profits) of the firm mainly for the operating activities?

A: Statement of cash flows: It is one of the financial statements that show the cash and cash…

Q: Explain the key steps in the acquisition method in accounting for business combination. Why Fair…

A: Business Combination- It is a situation when an entity acquires the business of other entity or…

Q: What type of firms or businesses under industry membership and asset s

A: Answer: There are different types of firms that are classifies under membership and asset size.

Q: Which of the following statements is true about goodwill? O a. Goodwill may be recorded when it is…

A: Goodwill is recorded when one company acquires another in a business combination and amount of…

Q: What major trends in taxation income sources will have an impact on the firm? What action has the…

A: The taxation income is the income on which the company or the recipient of the income have to pay…

Q: What are the different financial risks in business acquisition and combination?

A: Financial risk is the risk that the company has overpaid or has got more leverage than required or…

Q: Why should shareholders be the owners of the firm?

A: A shareholder, also known as a stockholder, is a person, company, or institution who owns at least…

Q: Discuss how Floating and Fixed debentures affects the profitability of a business?

A: In floating debentures the interest rate of such debentures change will the level of changes... Such…

Q: What is working capital and how does it differ from other types of capital? What role does it play…

A: Here is the Answer and Explanation:

Q: What will this indicate about the operations of the firm

A: Three return on assets profit margin ratio, return on assets, and return on equity—are given to us…

Q: Why do some companies use gross book value instead of net book value to measure a division’s…

A: Return on investment (R01):   This financial ratio evaluates how efficiently the assets are used in…

Q: What are the specific process or steps and the people involve in conducting a financial turnaround…

A: Financial Turnaround - The financial turnaround or Turnaround management is the process of reviving…

Q: What are the different types of risks associated with businesses?

A: Standard Disclaimers“Since you have asked multiple question, we will solve the first question for…

Q: How do a company’s investment opportunities, capital structure,and working capital policies affect…

A: Shareholders are the subscribers of the firm’s capital. They are the owners of the company. A…

Q: What is the objective of the firm?  Why?

A: Business firm are defined as the combination of the financial, physical, and the manpower resources,…

Q: Why is hedging relevant for a company?

A: Hedging represents the strategy of risk management in order to offset the losses associated with the…

Q: How can you tell of a company is profitable?

A: Profit. of a Company:After deducting all of the costs associated with running a business, the amount…

Q: HOW MUCH IS THE GOODWILL ON THE BUSINESS COMBINATION

A: When two businesses are consolidated with an aim to grow in size by means of one organization…

Q: Why is it important to understand the economic systemunder which a company operates before entering…

A:

Q: investment help to an business to grow

A: Investment are very necessary for growth of economy and help business to grow.

Q: How important is liquidation based value in a business?

A: Answer: Liquidation based value is the value of company that is determined on the basis of the…

Q: What does GAAP mean? Why should businesses adhere to GAAP when reporting to external stakeholders?

A: The accounting is a process to identify, classify and record the transactions of the business and to…

Q: fine agency relationship. Briefly describe agency problems, agency costs and incentives do managers…

A: Agency relationship is very common problem in organization type of structure and very prominent…

Q: What are the sources or capital available to business? Why is the capital mix of a company so…

A: The percentage of capital (money) at work in a business is referred to as “capital structure” or…