Purchase consideration Number of questions: 5 Types of questions: Multiple choice Time to complete: 2 minutes Click on 'Next' button when you are ready. When two or more companies carrying on similar business decide to combine and form a new company, it is known as: External reconstruction Amalgamation Internal reconstruction Absorption None What does the term "Purchase Consideration" refer to? The process of deciding what to buy in a supermarket The total amount of money spent on purchasing assets The price paid or payable for acquiring a company or its assets The cost of maintaining a company's assets None Which of the following is NOT a method of determining Purchase Consideration? Net Asset Value (NAV) Method Net Payment Method Discounted Cash Flow (DCF) Method Lump Sum Method None In the Net Asset Value (NAV) Method, what is used to determine the Purchase Consideration? The difference between the assets and liabilities of the company The discounted future cash flows of the company The price-to-earnings ratio of the company A fixed lump sum amount agreed upon by both parties None What is the primary advantage of the Lump Sum Method? It provides a fair valuation based on the company's future earnings It is the simplest method and involves less negotiation between the parties It takes into account the company's financial position and performance It calculates the value of the company based on its current market price None Enter your email address Name
