Which of the following is a vertical combination? * O A combination where the two entities are competitor in the same industry O None of the above describes a vertical combination O A combination where the two entities are unrelated O A combination where the two entities have a potential buyer/seller relationship

Which of the following is a vertical combination? * O A combination where the two entities are competitor in the same industry O None of the above describes a vertical combination O A combination where the two entities are unrelated O A combination where the two entities have a potential buyer/seller relationship

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 3MC: Which of the following is a disadvantage of the partnership form of organization? A. limited life B....

See similar textbooks

Similar questions

A horizontal merger takes place between companies operating:a. At different stages of the production processb. In the same area of businessc. In unrelated lines of businessd. All of the abovee. None of the above
Which of the following situations best describes a business combination to be accounted for as a statutory merger? Select one: a. Two companies combine to form a new third company, and the original two companies are dissolved. b. One company transfers assets to another company it has created c. Both companies in a combination continue to operate as separate, but related, legal entities. d. Only one of the combining companies survives and the other loses its separate identity
Which of the following statements best describes the difference between a merger and joint venture? a. None of these statements provided differences the two. b. In a merger , two firms combine financial resoures to establish a new firm c. in a joint venture the bidding firm takes control o fthe control of the joint project. d. In a joint venture , firms agree to cooperate in pursuit of joint goal
Which of the following statements is true? Multiple Choice The pooling of interests for business combinations is an alternative to the acquisition method. The purchase method for business combinations is an alternative to the acquisition method. Neither the purchase method nor the pooling of interests method is allowed for new business combinations. Any previous business combination originally accounted for under purchase or pooling of interests accounting method will now be accounted for under the acquisition method of accounting for business combinations. Companies previously using the purchase or pooling of interests accounting method must report a change in accounting principle when consolidating those subsidiaries with new acquisition combinations.
An entity shall determine whether a transaction or other event is a business combination by applying the definition in PFRS 3, which requires that: a. All of the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination. b. All of the combining entities transfer their net assets, or the owners of those entities transfer their equity interests, to a newly formed entity. c. The assets acquired and the liabilities assumed constitute a business. d. All of the above.
. It is a type of business combination wherein an investor, having an existing involvement in the investee, acquires additional investment in order to obtain control over the investee. a. Business combination achieved by contract alone b. Business combination achieved by mere exchanges of equity interests c. Business combination achieved in stages d. Baby step combination
1 Which of the following is a characteristic of a business combination that should be accounted for as an acquisition? Group of answer choices a. The combination must involve the exchange of equity securities only. b. The transaction may be considered to be uniting of the ownership interest of the companies involved. c. The transaction establishes an acquisition fair value basis for the company being acquired d. Two companies may be about the same size and it is difficult to determine the acquired company and acquiring company.
If both big companies enter into a joint venture, will that signify unfair competition? Explain briefly.
The combination of resources through a partnership arrangement rather than through a legal combination of the acquiring and target firm is known as a ? a Leveraged Buyout b Joint Venture c Hostile Takeover d Vertical Merger e None of the above
How important is intercompany activity on decisions to form business combinations? We see intercompany transfers quite often between companies involved in a business combination. Why do you feel that this happens so frequently? Is this ever a concern to the investors, controlling and noncontrolling?
Intra-entity transfers between the component companies of a business combination are quite common. Why do these intra-entity transactions occur so frequently?
Which one of the following statements correctly applies to a merger? Multiple Choice The acquiring firm does not have to seek approval for the merger from its shareholders. The shareholders of the target firm must approve the merger. The acquiring firm will acquire the assets but not the debt of the target firm. The merged firm will have a new company name. The titles to individual assets of the target firm must be transferred into the acquiring firm's name.