A company might pay more for a set of assets than the total of their apparent values
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A company might pay more for a set of assets than the total of their apparent values as individual units because:
(a) It expects future profits.
(b) It believes that it is buying unidentified intangible assets such as customer loyalty.
(c) It has a management team that is very keen on expansion and is prepared to pay too much.
(d) Any of the above.
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Related Book For
Financial Accounting An International Introduction
ISBN: 9780273685203
2nd Edition
Authors: David Alexander
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