In mergers and acquisitions,the term used for the acquired segment to which the goodwill from the acquisition is assigned is called the
A)sub-unit.
B)merger-unit.
C)reporting-unit.
D)segment-unit.

Question

Quizplus · Accepted Answer

The term used for the acquired segment to which the goodwill from the acquisition is assigned is called the reporting unit. This is the unit within the acquiring company's structure that is responsible for generating the financial results that are being acquired. The reporting unit is typically a segment of the acquired company that has its own management team and operates as a standalone business. The goodwill from the acquisition is then assigned to the reporting unit for accounting purposes. This allows the acquiring company to track the performance of the acquired segment separately and assess the overall impact of the acquisition on its financial results.

In Mergers and Acquisitions,the Term Used for the Acquired Segment