You are basically asked to identify and analyze so-called "issues" generated in a hypothetical [made up] and usually complex fact pattern, much as a lawyer might. Most exams are hours in length, and either "closed" or "open book.
Get Full Essay Get access to this section to get all help you need with your essay and educational issues. Intercorporate Acquisitions and Investments in Other Entities The Development of Complex Business Structures By expanding into new markets or acquiring other companies already in those markets, companies can develop new earnings potential and those in cyclical industries can add greater stability to earnings through diversification.
A subsidiary is a corporation that is controlled by another corporation, referred to as a parent company. Control is usually through majority ownership of its common stock. Reasons for creating subsidiary: May transfer receivables to subsidiary.
Other companies can hold interest in entity. Transferring company therefore able to share risk of receivables. Tax benefits Companies have used subsidiaries to borrow large amounts of money without reporting debt on balance sheets.
A special purpose entity is a financing vehicle that is not a substantive operating entity, usually created for one specific purpose. May be in the form of a corporation, a trust, or a partnership. Business Expansion and Forms of Organizational Structure Recently companies have been expanding by means of acquiring other companies rather than product development or expanding existing product lines into new markets.
Internal Expansion Conduct expanded operations through subsidiaries or partnerships, joint ventures, or special entities. Transfer assets to new entity and receive equity ownership in exchange May establish subs for tax incentives, less regulation, spreading of risk.
May establish subs for disposition purposes, like shedding nonaligned operations, unprofitable operations, or to gain shareholder approval for merger with new company.
While the two divestiture types are similar, the split-off could result in one set of the former parent shareholders exchanging their shares for those of the divested sub.
Although transfer of ownership to one or more unrelated parties normally results in a taxable transaction, properly designed transfers of ownership to existing shareholders generally qualify as nontaxable exchanges. Traditionally, control is majority ownership of stock.
However, recently there has been greater possibility of control with less than majority or even no ownership. In some cases, a formal agreement may be equivalent in substance to a business combination, yet different in form. Organizational Structure Several approaches are possible, each with separate financial reporting procedures 1.
Thus, two companies are merged into a single entity still under the name of the original company. Financial reporting is based on the original organizational structure.
Controlling Ownership — the acquired company remains separate legal entity but purchasing company has majority stock.
Requires consolidated FR, even if the sub is created rather than purchased. Investor company reports interest in investee as investment.
That entities FS would be consolidated with the PB. Creating Business Entities In simple cases, the company transfers assets and liabilitiesto an entity that the company has created and controls and in which it holds majority ownership.An essay exam requires you to see the significance and meaning of what you know.
It tests your knowledge and understanding of the subject and your skill in reading and writing. To be successful on an essay exam, you must. Write an essay discussing TWO of the subjects mentioned above.
You should explain why you think these subjects should continue to be taught at secondary schools, giving reasons to support your answer.. You may, if you wish, make use of the opinions expressed by other readers, but you should use your own words as far as possible. PREPARING EFFECTIVE ESSAY QUESTIONS A Self-directed Workbook for Educators by Christian M.
Reiner supports teaching assistants who work with educators and often have exam development To review the criteria for an effective essay question, evaluate Example A. Jul 19, · SBI PO Descriptive Exam: Sample Essay 1 Special Economic Zones: Boon or Bane.
Special Economic Zones, more popularly known as SEZs are specifically delineated duty free enclaves.
They are modern economic zones which enjoy special privileges as . Step-by-step guide in answering CMA exam essay questions, structure, format, grading, sample, and practice tips to score and ace this section.
In the Wiley CMA Exam Review Learning System (part 1 for example), there are 2 detailed examples, together with 28 practice essay questions with model answers. Analysis—1: In this essay, the writer has merely identified aspects of Bogard’s use of evidence without explaining how the evidence contributes to the argument.