Which of the Following Is Not True of Mergers

question 99

Multiple Choice

Which of the following is not true of mergers?

• A) Liabilities and assets transfer automatically
• B) May be subject to transfer taxes.
• C) No minority shareholders remain.
• D) May be time consuming due to need for shareholder approvals.
• E) May have to pay dissenting shareholders appraised value of stock

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Definitions:

Statement Of Partners' Equity

A financial document that shows changes in the ownership interest of partners in a partnership over a period of time.

Total Capital

The sum of a company's debt and equity, representing the funds used to finance its operations and growth.

Partnership

Business operation legally established for dual or multiple partners to govern and split profits.

Capital Account

In finance, it relates to a financial statement detailing the investment funds brought into and taken out of a company by its owners; in economics, it represents the part of the balance of payments recording net changes in a country’s foreign assets and liabilities.