Answer:
d. only when there is an exchange transaction involving the purchase of an entire business.
Explanation:
Goodwill: Goodwill is an intangible asset that is shown in the asset side of the balance sheet just like intellectual properties, trademark, etc. The goodwill is recognized when it is purchasing the business of the organization
The goodwill is computed by considering the consideration that is paid and the net assets value based on fair value.
Hence, the most appropriate option is d. as the other reasons are not valid
Answer:
Sector bets
Explanation:
Vanguard funds are not a true representation of indexes they are supposed to track because of the occurrence of sector bets.
Sector bet is when the fund manager for the Vanguard fund chooses to invest in parts of the fixed income universe. He feels this will yield good returns in the future.
So what makes up the fund portfolio is different from the index itself, and this causes different investment returns.
A way to make Vanguard funds more accurate is to tighten volume of different types of bonds that the manager can purchase. This will reduce deviation from index figures
Answer:
identify those applicants that are most likely to succeed.
Explanation:
There are several reasons why companies carry out background checks, the most important ones are:
- safety and security purposes: e.g. convicted felons cannot work for certain industries that have direct relation with state and federal government levels, a bank will not hire an individual convicted of fraud, power plants will not hire someone convicted of terrorism, etc.
- evaluate the candidate's potential: by evaluating the candidate's character, fitness and even past mistakes, the company may be able to determine the professional potential of the candidate, e.g. someone who had excellent grades in grades can be considered to be very fit for a job, but if previous employment situation show that they cannot handle pressure or extra work, then their potential is limited.
$9 is the marginal revenue for forty first unit.
The increase in revenue that comes from selling one more unit of output is known as marginal revenue. Although marginal revenue can remain constant at a certain level of output, it will eventually start to decline as the output level rises due to the law of diminishing returns.
According to economic theory, firms that are completely competitive keep on producing goods until marginal revenue and marginal cost are equal. Multiple situations call for the usage of marginal revenue. Businesses examine the market's client demand for items using historical marginal revenue data. Additionally, they set the most effective and efficient pricing using the information. Last but not least, businesses rely on marginal revenue to better comprehend estimates; from this data, future production schedules, such as planning for material requirements, are then derived.
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