Firms that pursue an unrelated diversification strategy and are unable to create additional value tend to experience a D)diversification discount.
Diverse companies change at a reduction relative to comparable single-section firms. We argue in this paper that this observed bargain isn't always in keeping with the evidence that diversification destroys fees. companies select to diversify. company characteristics that make firms diversify may additionally purpose them to be discounted.
We discover that there is a diversification bargain: The marketplace values of monetary conglomerates that interact in multiple sports, e.g., lending and non-lending financial services, are decreased than if those financial conglomerates were broken into economic intermediaries that specialize within the person's activities.
The diversification top class is the additional return that buyers can obtain with the aid of correctly diversifying their portfolios across a range of asset instructions. Powerful diversification calls for something substantially wiser than just shopping for a group of budget or ETFs, however, it's miles well really worth the effort.
Your question is incomplete. Please find below the complete question.
Firms that pursue an unrelated diversification strategy and are unable to create additional value tend to experience which of the following
A) product discount
B) financial controls
C) strategic controls
D) diversification discount
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Answer:
Pedigo Corporation
Journal Entries
Debit Credit
Amortization Expense - Patent $10,000
Patents (Working 1) $10,000
<em>To record amortization of Patents on December 31, 2020</em>
Explanation:
Working 1:
Amortization expense = Patent cost x 1/5 year x 8/12 months
= $75,000 x 1/5 x 8/12
= $10,000
Note that no entry is made to to amortize Goodwill worth $150,000. This is because Goodwill has an indefinite life. As only entries to record amortization are required, there is no other entry on December 31, 2020.
Answer:
Given that,
Accounts receivable = $435,000
Debit Allowance for Doubtful Accounts = 1,250
Credit Net Sales = 2,100,000
Ending account receivable to be uncollectible = 3.5%
Estimated bad debts:
= Accounts Receivable × 3.5% + Debit balance in Allowance for Doubtful Accounts
= (435,000 × 3.5%) + 1,250
= $16,475
Therefore, the journal entry is as follows:
Bad debts expense A/c Dr. $16,475
To Allowance for Doubtful Accounts $16,475
As a buyer's agent, you must disclose
this information to the seller's agent since they had you write
and present an offer for cash, with a 30-day close, knowing that it is highly
possible that their funds will not be available at that time.