Yeats Corporation's Sales in Year 1 Were $396,000 and in Year

question 90

Multiple Choice

Yeats Corporation's sales in Year 1 were $396,000 and in Year 2 were $380,000.Using Year 1 as the base year,the percent change for Year 2 compared to the base year is:

• A)−104%
• B)100%
• C)−4%
• D)96%
• E)4.2%

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Definitions:

Surviving Entity

The corporation or entity that continues to exist after a merger, acquisition, or consolidation, absorbing the assets and liabilities of the other entity.

Debts

Money owed by one party, the debtor, to another, the creditor, usually arising from a transaction of goods, services, or loans.

Absorbed Corporations

companies that have been merged into or taken over by another corporation, losing their separate legal identity.

Right of Recovery

The legal right to seek compensation or restitution for a loss, damage, or injury suffered.