On january 1, 2018, ramsey company purchased 35% of the outstanding common shares of the vapor company for $70,000 when the net assets were $200,000. during 2018, vapor company earned $80,000 and declared a dividend of $40,000. ramsey accounted for the investment using the equity method. ramsey’s share of vapor’s income for 2018 is:
a. $42,000
b. $28,000
c. $14,000
d. $40,000

Tl & co. is following a related-linked diversification strategy, and soar inc. is following a related-constrained diversification strategy. how do the two firms differ from each other? a. soar inc. generates 70 percent of its revenues from its primary business, while tl & co. generates only 10 percent of its revenues from its primary business. b. soar inc. pursues a backward diversification strategy, while tl & co. pursues a forward diversification strategy. c. tl & co. will share fewer common competencies and resources between its various businesses when compared to soar inc. d. tl & co. pursues a differentiation strategy, and soar inc. pursues a cost-leadership strategy, to gain a competitive advantage.