Answer:
Fair Value method, and only a portion of Ima's 2004 dividends represent earnings after Pal's acquisition.
Explanation:
The part of the dividend that reduce the carrying value of the investment can be said to be a liquidating dividend. Liquidating dividend is said to have occurred when the payment made by the investee is higher than the income that was earned in the course of the period in which the shares of the investee was owned by the investor.
On the other hand, the cost method treats liquidating dividends as spend or reduction in the investment account and treats normal dividend as income. Hence it is impossible for the firm to use equity method.
This is because dividend are seen as a reduction in investment account under the equity method. This means that dividends received cannot be taken as income in this method, hence C and D are wrong.
Answer:
The correct answer is option B.
Explanation:
The main difference between technological efficiency and economic efficiency is that technological efficiency is concerned with the quantity of outputs used while economic efficiency is concerned with the value of inputs used.
Technological efficiency implies that a firm is producing a level of input using the least possible quantity of inputs. Economic efficiency occurs when a firm is able to produce a level of output at the least possible cost.
Technological efficiency does not require economic efficiency but economic efficiency require technological efficiency.
Answer:
Horizontal merger
Explanation:
An horizontal merger is a consolidation or merging of companies that are the same industry. Merging of companies in the same industry helps the companies to have a greater market share of the industry.
As seen in the question below, both companies are beer companies and are consolidating or merging to form the largest beer company in the world. This wold give them a global coverage as opposed to the few countries they were restricted to before the merger.
Cheers.
Answer: product differentiation
Explanation:
From the question, we are informed that Intel achieved success by using the "Intel Inside" advertising campaign and logo that appears on many brands of PCs.
This is an example of a barrier to entry which is known as product differentiation. Poduct differentiation is when a company makes its product different from other similar products so that the product will be more attractive and unique from others.
