Answer:
The goodwill that resulted from the transaction is $1.3 million, the excess paid by Backstreets Co. over the net assets of Jungleland Inc. acquired
Explanation:
Goodwill is the excess of purchase consideration over net assets acquired in a business combination.
The total net assets acquired can be deduced as total assets less total liabilities:
Land $2m
Buildings $3.7m
Inventory <u>$2.5m</u>
total assets 8.2m
Liabilities ($1.8m)
Net Assets $6.4 m
Purchase price $7.7 m
Goodwill is $1.3m ($7.7m -$6.4m)
The goodwill is the advantage that the owners business have over the new owners being the pioneers that set the business on the right path
Answer:
C. blogs
Explanation:
Personalized online journals where people and organizations can keep a running dialogue such as the one illustrated here are known as blogs
an example of overconfidence would be: Joe makes a stock price prediction and believes that there is only a 5% chance that his estimate is wrong; overlooking recent articles about the bad financial health of the business.
Buying stocks without any prior knowledge in finance would provide people with 50% rate of success. Good stock traders usually could improve their success rate up to 70% while success rate of 95% is very unlikely. Especially if the financial information showed a bad sign. The fact that Bill still put his money on the company's stock indicates that he is overconfident.
Answer:
stock-option plan
Explanation:
Stock-option plan -
It is a form of equity compensation , which is given to the employees , in order to attract them , is referred to as stock - option plan .
According to this plan , the employees are provided with the right to buy some specific shares of the company they are working in , for some specific period of time , and for some fixed amount .
It is like a regular call , for giving the right to the employees .
This plan helps the employees to get motivated to work hard and increase their performance .
Hence , from the given scenario of the question ,
Donald is provided with the stock - option plan .
