What is meant by a bargain purchase and how is it recorded?
What will be an ideal response?
Answer: A company makes a bargain purchase when the fair value of the identifiable net assets in an acquisition exceeds the purchase price. The acquiring firm reports the gain from the bargain purchase as income from continuing operations on the income statement.
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________ is the a type of validity that assesses the relationship between theoretical constructs. It seeks to confirm significant correlations between the constructs as predicted by theory
A) Convergent validity B) Discriminant validity C) Nomological validity D) Concurrent validity
Which of the following is true about networks?
A) Networks are neither formal organizations with clearly defined hierarchical structures nor impersonal, decentralized markets. B) In networks, buyers and sellers share no linkages and rarely interact with each other. C) In a network, continued interaction among partners leads to competition and rivalry that bring down productivity. D) Networks represent the economically beneficial short-term relationships the firm undertakes with other business entities.