SIE Exam Question 113: Answer and Explanation

Question: 113

___________ is an intangible asset that is the result of the acquisition of one company by another for a premium value.

• A. Target value
• B. Book value
• C. Acquisition value
• D. Goodwill

Correct Answer: D

Explanation:

Goodwill is an intangible asset that is the result of the acquisition of one company by another for a premium value. Market value is what others are willing to pay for an asset on the open market. The book value is the difference between a company's total assets and total liabilities. Acquisition value or acquisition cost is the price paid for the acquisition of an asset, including all taxes, fees, charges, and other expenses.