What has been the rationale for LVMH acquisitions

Q: Explain how the move towards greater use of fair value accountingmight increase information risk

A: Introduction: Information risk: Information Risk is the risk that the information based on which…

Q: What are the attributes associated with a successful acquisition strategy?

A: Acquisition: Acquisition refers to when one company purchases a another company’s share partly or…

Q: Explain the difference in the accounting treatment of the cost of developed technology and the cost…

A: Developed Technology relates to those projects that have reached technological feasibility.…

Q: What does vertical analysis try to reveal

A: The comparative study of financial line items of an income statement or a balance sheet is generally…

Q: Which are the Methods of Title Assurance?

A: The methods of title assurance are as follows: Title covenants Title opinion based on public record…

Q: What is merger?

A: Merger: It is a deed that joins 2 existing firms into one new endeavor. There are a few sorts of…

Q: Define competitive bids (security offerings)

A: Competitive bidding is the procedure where multiple vendors are invited to offer their prices for…

Q: Discuss any potential synergistic gain to the acquire and the target entity.

A: Synergistic gains arises due to acquisition and mergers. It can determined by comparing the value of…

Q: What is 'fair value',and why is it relevant to consolidation accounting?

A:

Q: What is proportionate consolidation? and how will it affect the JV?

A: The proportionate consolidation is the method in which the company reports the assets and…

Q: What is AB Share Mechanism and what is this mechanism used for?Provide Example

A: An organization's total capital is bifurcated into many units. Each unit represents ownership in the…

Q: What are retakaful and reinsurance and how takaful products can be used for hedging purposes?

A: Retakaful and reinsurance : In simple words, The Muslim reinsurance sector is referred to as…

Q: What are some motives for divestitures?

A: The question is based on the concept of divestiture strategy, which is used by company to overcome…

Q: What kind of acquisition is it?

A: Mckinsey divided the types of acquisition based on the purpose of such acquisition. 'Acquisition for…

Q: what is the advantages and disadvantage of disclosure? and why is disclosure important?

A: The full disclosure means that company's financial statements should tell about all the important…

Q: How are non controlling intrerests (NCI) affected by intragroup transactions?

A: Non-controlling interests are the ownership is defined where the shareholder holds less than 50% of…

Q: Briefly describe some of the anti-takeover measure used.

A: Companies are either reducing the competition or adjusting with them. This can be done with the help…

Q: Define takeover

A: When a company purchases another company for the purpose of expansion of business is termed as the…

Q: What are the sources of pressure that change and influence the development of GAAP?

A: Generally Accepted Accounting Principles (GAAP): A set of accounting principles, practices and…

Q: What is the reinvestment rate assumption when using MIRR?

A: Modified Internal Rate of Return: This method is used to rank investments or projects for an…

Q: Example: Cost of acquisition n

A: Cost of acquistion is the cost of acquiring assets of the company .  As…

Q: What are the limitations of TCE approach to the make or buy decision?

A: TCE Approach is Transaction Cost Economics Theory. It means an activity should be performed within…

Q: How can diversification reduce risks? Give examples from the rea world

A: Diversification is the process of managing risk which mixes the individual investments in a…

Q: Explain about the Hedging against fair value risk.

A: Financial instrument:   It is a monetary contract between two parties which acts as an evidence of…

Q: CDOs

A: Collateralized Debt Obligations or CDO's refer to asset backed securities which would include both…

Q: Define Liquidation?

A: Liquidation is the process through which an entity comes to an end and is being formally closed. It…

Q: why would using a single WACC not be appropriate for valuing an LBO?

A: Leveraged Buyout (LBO) It is an acquisition in which the primary source of consideration is debt.…

Q: How can patents, copyrights, and legal challenges be used to manage business risk?

A: A company can adopt a risk management strategy to mitigate business risk.

Q: Define the term Acquisitions.

A: An acquisition is when one company purchases most or all of another company's shares to gain control…

Q: What is hostile merger?

A: Introduction: The merger is described as the mechanism by which one corporate entity merges its…

Q: What are some types of divestitures?

A: A divestiture or divestment is the disposal of the company’s assets or a through sale, exchange,…

Q: can goodwill be amoritized?

A: Goodwill: Goodwill is an intangible asset to the company. However, goodwill is recorded in the books…

Q: Differentiate between public and private syndications?

A: Syndicate: A syndicate is a provisional agreement of businesses that connects together to manage a…

Q: How does compounded interest work?

A: compound interest : it is the interest on loan calculated based on principal and interest.

Q: Describe some takeover defenses.

A: Introduction: Defensive tactics: Frequently the managers of target firm oppose the attempts of…

Q: Difference between Internal reconstruction and External reconstruction (Merger and acquisition)?

A: Definition: Acquisition: The acquisition refers to the business combination when one entity or…

Q: hich is more liquid, franchise or trademark?

A: Liquidation is the process of closing a business and distributing its assets to claimants in finance…

Q: What is the OLAP operation called consolidation?

A:

Q: What is merger waves?

A: A merger is an agreement under which two existing companies unite into one new company. Mergers are…

Q: What is a “floater”/“inverse-floater” tranche in a CMO offering?

A: CMO( Collateralized mortgage obligation): The financial instrument which is collateralized by the…

Q: Explain Amortize Goodwill? Give an example?

A: Amortize Goodwill: Goodwill is an intangible asset amortization of goodwill means a reduction in the…