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

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: Explain research and development purchase in business acquisitions.

A: Research & Development is a process by which a business obtains new knowledge and uses it to…

Q: The comparison of a company's financlal condition and performance across time is known as: Multiple…

A: The financial position of the organization is defined as the current balances of its reported…

Q: What are the possible actions when a business becomes insolvent?

A: Insolvency occurs when a person or business is unable to service the debt to lenders as debts come…

Q: What are the major internal controls over owners’ equity?

A: Stockholders’ equity is the claims of owners on a company’s resources, after the liabilities are…

Q: What conflicts of interest can arise between managers and stockholders?

A: Stockholders also knowns as shareholder is an individual, firm, or institution which owns at least…

Q: What are some of the advantages of holding companies? Identify adisadvantage.

A: The advantages of holding company: Risk reduction: Large companies favor a structure of holding…

Q: What is the difference between an operating merger and a financial merger?

A: Introduction: A process or an arrangement in which two or more companies are merged to create one…

Q: corporate

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

Q: Which one of the following is the least likely reason a company may acquire an ownership interest in…

A: An acquisition occurs when a company acquires most of the shares of another company by making a huge…

Q: What are the sources of synergy after acquisitions and mergers?

A: Merger and acquisitions is two companies working together for the purpose of achievement of…

Q: What are diversified companies? What accounting problems are related to diversified companies?

A: Diversified Companies: The companies which are engaged in multiple businesses, provides a large…

Q: What are holding companies? What are theiradvantages and disadvantages?

A: Holding companies: Holding company is a corporation that does not carried out any processes,…

Q: Explain the concepts of business acquisitions, mergers and consolidation of financial statements.

A: The merger or acquisition of smaller companies into large business entities is known as…

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

A: One of the factors that affect the goodwill value is the nature of business. If a firm is having…

Q: What has been the likely effect of the Gramm-LeachBliley Act on financial consolidation?

A: The Gramm-Leach Bliley act is a act that has been enacted in order to explain the provisions of the…

Q: What role does the buy–sell agreement occupy in a business successionplan?

A: The role of the buy–sell agreement occupy in a business successionplan is given below as,

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 is financial merger?

A: Merger refers to the strategic alliance between the two companies to operate more efficiently with…

Q: What are the advantages of bringing IPO  into company?  What are the advantages and disadvantages of…

A: 1.)- Advantage of transfer IPO into company-  Blessings and downsides of IPOs An initial public…

Q: How does a company determine whether to account for an equity investment using the fair value…

A: Financial Management: In layman’s words, financial management is the management of the finance or…

Q: List the potential conflict of interests between shareholders, executives and other stakeholders due…

A: Share Repurchase is also known as buy back. It means that when company buy back their own share it…

Q: What are variable interests in an entity and how might they provide financial control over an…

A: Variable interest is referred as the interest rate on loan or security that differ over the period…

Q: What merger-related activities are undertaken byinvestment bankers?

A: The roles of the investment bank will differ depending on whether the bank is representing the…

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: Is it possible for a person to form a joint venture with a business? What's your theory about that?

A: Will be explained:

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: Explain how principal-agent problems can emerge within shareholder firms and some of the…

A: Principal-agent problem is one of the common conflict which is observed in a shareholder firm or a…

Q: Should companies retain dividends in the firm to protect employment and investments?

A: Retaining dividend is a part of the profit that is not given to the shareholder in fact it is held…

Q: What are the functions of the underwriters in an IPO?

A: Initial Public Offering Initial public offering refers to the process by which a company sells its…

Q: Why is the Equity Valuation method is preferable from the point of view of an investor in valuing…

A: Valuation is the process of ascertaining the market value of the business or an asset. The valuation…

Q: The benefits from merger or acquisition and how to value the transaction?

A: Introduction: Merger and acquisition (M&A) means the consolidation of two or more companies for…

Q: Which of the following is not true with regard to a business combination accomplished in the form of…

A: This is the question of  parent  Company and subsidiary company.  Parent company has controlling…

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: Explain the co

A: Answer : An acquisition is defined as a company dealings wherever one company purchases some or all…

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 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…