Question

Value can be created by: Using assets Additional Capital Reducing liabilities Merger with another company

Value can be created by:

Using assets

Additional Capital

Reducing liabilities

Merger with another company

Homework Answers

Answer #1

Your required answer is option D i.e. Merger with another company.

Explanation:

Value can be created by merging with another company because when our company merge with another then it saves our various costs and also we get assets and resources of another company which helps to create value. however if we are doing merger with any loss making company then it may also reduce our value. However at the same time by using assets and introducing additional capital we can also try to built or create value. But option D is more better option out of all.

I hope this clear your doubt.

Feel free to comment if you still have any query or need something else. I'll help asap.

Do give a thumbs up if you find this helpful.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The another interpretation of the accounting equation is Assets = Liabilities + Contributed Capital + Beginning...
The another interpretation of the accounting equation is Assets = Liabilities + Contributed Capital + Beginning Retained Earnings + Net Income - Dividends + Beginning Accumulated Other Comprehensive Income + Other Comprehensive Income. True False
On June 30, 200X Carl Corporation purchased Lin Company by issuing 50,000 shares of stock. Stock...
On June 30, 200X Carl Corporation purchased Lin Company by issuing 50,000 shares of stock. Stock has a market value of $15.00 per share. This acquisition is to be recorded as a statutory merger through asset acquisition. In this type of business combination Carl company acquires all the assets and liabilities of Lin Company. Lin Company is dissolved and goes out of business.   Prepare the entries the purchase and combination on June 30, 200X. Following information is shown prior to...
Parkland buys all of Sander Company’s assets and liabilities. Sander’ balance sheet at the date of...
Parkland buys all of Sander Company’s assets and liabilities. Sander’ balance sheet at the date of acquisition, including fair value information on its reported assets and liabilities, is as follows: Book Value Dr (Cr) Fair Value Dr (Cr) Assets Cash, receivables $   1,000,000 $     950,000 Inventories 5,000,000 4,000,000 Property and equipment 60,000,000 45,000,000 Total assets $ 66,000,000 Liabilities & Equity Accounts and notes payable $ 30,000,000 29,000,000 Common stock 500,000 Additional paid-in capital 15,000,000 Retained earnings 20,500,000 Total liabilities and...
Cash $ 72,240 Liabilities $ 48,500 Noncash assets 134,000 Delphine, capital 91,600 Xavier, capital 57,000 Olivier,...
Cash $ 72,240 Liabilities $ 48,500 Noncash assets 134,000 Delphine, capital 91,600 Xavier, capital 57,000 Olivier, capital 9,140 Total assets $ 206,240 Total liabilities and capital $ 206,240 Delphine, Xavier, and Olivier share profits and losses in the ratio of 5:4:1, respectively. The partners have agreed to terminate the business and estimate that $15,400 in liquidation expenses will be incurred. What is the amount of cash that safely can be paid to partners prior to liquidation of noncash assets? Which...
WHAT IS THE VALUE FOR noncurrent assets, total assets, paid in capital and owner's equity given...
WHAT IS THE VALUE FOR noncurrent assets, total assets, paid in capital and owner's equity given current assets = 16870 current liabilities = 13466 concurrent liabilities = 11998 Retained earning = 13438 earning(los)after tax = 2014 dividends = 1580 total liabilities & owners equity = 40936
1. Dr. Pepper Snapple Group (DPSG) acquired the assets and liabilities of Turquoise Water Inc. on...
1. Dr. Pepper Snapple Group (DPSG) acquired the assets and liabilities of Turquoise Water Inc. on September 30, 2018, in a merger. The acquisition involves the following payments: Cash paid to Turquoise Water shareholders                                                                   $85,000,000 Cash paid to Morgan Stanley for consulting services                                                                   12,000,000 New stock issued, 100,000 shares, $0.50 par, fair value at acquisition                                                                   5,000,000 Stock registration fees, paid in cash                                                                   600,000 Earnings contingency, to be paid in three years, present value                                                                   2,000,000 Turquoise...
1.The cash needs of a business can be reduced by: Increasing percentage change Reducing days in...
1.The cash needs of a business can be reduced by: Increasing percentage change Reducing days in inventory Decreasing gross margin Reducing inventory turnover 2.When growing a business, working capital will always increase when: Gross margin increases The efficiency ratios increase Inventory turnover increases Current assets increase more than current liabilities
Market Value Capital Structure Suppose the Schoof Company has this book value balance sheet: Current assets...
Market Value Capital Structure Suppose the Schoof Company has this book value balance sheet: Current assets $30,000,000 Current liabilities $10,000,000 Fixed assets 50,000,000 Long-term debt 30,000,000   Common stock   (1 million shares) 1,000,000 Retained earnings 39,000,000 Total assets $80,000,000 Total claims $80,000,000 The current liabilities consist entirely of notes payable to banks, and the interest rate on this debt is 11%, the same as the rate on new bank loans. These bank loans are not used for seasonal financing but instead...
The text definition of working capital is Curr Assets-Curr Liabilities=Working Capital. But can't stretching AP become...
The text definition of working capital is Curr Assets-Curr Liabilities=Working Capital. But can't stretching AP become a positive cash flow? Explain how AP can become a positive cash flow.
Market Value Capital Structure Suppose the Schoof Company has this book value balance sheet: Current assets...
Market Value Capital Structure Suppose the Schoof Company has this book value balance sheet: Current assets $30,000,000 Current liabilities $20,000,000 Fixed assets 70,000,000 Notes payable $10,000,000 Long-term debt 30,000,000   Common stock (1 million shares) 1,000,000 Retained earnings 39,000,000 Total assets $100,000,000 Total liabilities and equity $100,000,000 The notes payable are to banks, and the interest rate on this debt is 11%, the same as the rate on new bank loans. These bank loans are not used for seasonal financing but...