You are an accountant working with a large corporation that manufactures functional desk supplies (staplers, hole punches, in a staff meeting with the chief financial officer (cfo) and several other accountants, the cfo mentions that your company has found a company that produces office decorations (prints, paintings, clocks). the cfo mentions that your company would like to buy this decoration business but it has had a few hard years and has a tremendous amount of debt. your company’s president does not want to merge with the decorating company because he does not want its debts to come with the purchase. instead, he would like to buy the assets of the decorating company, disclaim the debt, and create a new subsidiary of your company to run that business. he wants to offer a small amount of stock in your company and in the new subsidiary as payment for the assets, but primarily will be giving the current management of that company jobs within the new company to pay for the assets. you’re concerned that this may not work and that your company will still have responsibility for the liabilities of the decorating company. explain what could be problematic about your president’s desired approach.

Which of the following statements about the relationship between economic costs and accounting costs is true? multiple choice accounting costs are equal to or greater than economic costs. accounting costs must always equal economic costs. accounting costs are always greater than economic costs. accounting costs are always less than or equal to economic costs.

Read the following paragraph, and choose the best revision for one of its sentences. dr. blake is retiring at the end of the month. there will be an unoccupied office upon his departure, and it is big in size. because every other office is occupied, we should convert dr. blake’s office into a lounge. it is absolutely essential that this issue is discussed at the next staff meeting. (a) because every other office is occupied, it’s recommended that we should convert dr. blake’s office into a lounge. (b) because every other office is filled, we should convert dr. blake’s office into a lounge.

Cooper sues company a in state court in south carolina, where he lives, for negligence alleging personal injury and property damage of $100,000 after a truck driven by an employee of company a rear-ended his pickup truck. company a is incorporated in delaware, has its headquarters in new york, but does a substantial amount of business in south carolina. claiming diversity of citizenship, company a seeks removal to federal district court, but cooper opposes the motion. which of the following is true regarding whether the case may be properly removed to federal district court? the amount in controversy satisfies diversity requirements; and if company a's nerve center is in a state other than south carolina, then the case may be properly removed to federal court. the amount in controversy satisfies diversity requirements; and because company a is incorporated and has its headquarters in a state other than south carolina, the case may be properly removed to federal court. because the amount in controversy satisfies diversity requirements and company a is incorporated in a state other than south carolina, the case may be properly removed to federal court regardless of where company a's headquarters, nerve center, or principal place of business is located. because the amount in controversy satisfies diversity requirements and company a is headquartered in a state other than south carolina, the case may be properly removed to federal court regardless of where company a is incorporated and regardless of the location of its nerve center. because the amount in controversy fails to satisfy jurisdictional requirements, regardless of the location of company a, the case may not be removed to federal court.