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Scenario ? applies 10 Questions 10 - 1 1 Pharma Lid is a research and development entity that has not started revenue generating* operations .

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Scenario ? applies 10 Questions 10 - 1 1 Pharma Lid is a research and development entity that has not started revenue generating* operations . The work force consists of researchers who are developing " now pharmaceutical product that has a pending patent application . Negotiations to license this product to customers are currently ongoing but have not been finalized . Now Med I I'd has purchased all assets and liabilities of Pharma Lid on 6 April 2017 .` N _ Atby $ Question 10 Business Dumping Vice`\\ Which of the following arguments is correct ? @ process @ OUTPUT AK Pharma Lid does not constitute a business because no income is generated and hence* there is no outpull . B . Pharmna I t' does not constitute a business because it does not have a patent and therefore there is no input . C . Pharma Led could constitute a business because of the presence of researchers engaging in development activities . Pharma Lid could constitute a business but only if the researchers have been transferred as a part of the purchase . Question ! !) Which of the following additional facts would most strongly suggest that a business combination has occurred on 6 April 2017? A . Before 6 April 2017 , Pharma I'd has identified a customer who may be willing to pay $1. 500, 000 for the product licence .\\ B3. New Med It'd has provided its own employees to be integrated with the activities conducted at Pharma Lid . Pharma Lid's patent application has been granted on 20 April 2017 . D. New Med Lid has paid $1, 800, 0010 for the purchase when the fair value of the identifiable net assets of Pharma It'd was $1 , 780. 000 on 6 April 2017 . *#* End of Scenario 2 * * *

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