A Inc Is Contemplating a Business Combination with B Inc

question 48

Multiple Choice

A Inc. is contemplating a Business combination with B Inc. However, A Inc.'s management is uncertain as to whether it should purchase B's assets or a majority of B's voting shares. The fair market values of B's assets far exceed their book values. A's management should be advised that IN MOST CASES:

• A) A purchase of B's shares would likely be the cheaper method of acquiring control. However, it would be less advantageous to the consolidated entity from a Tax standpoint.
• B) A purchase of B's shares would likely be the cheaper method of acquiring control. It would also be more advantageous to the consolidated entity from a Tax standpoint.
• C) A purchase of B's shares would likely be the costlier method of acquiring control. However, it would be more advantageous to the consolidated entity from a Tax standpoint.
• D) A purchase of B's shares would likely be the costlier method of acquiring control. It would also be less advantageous to the consolidated entity from a Tax standpoint.

Understand the factors influencing career choices and development.

Recognize the role of parental influence and socio-economic status in occupational choices.

Acknowledge the impact of gender in the selection of STEM fields.

Understand the role of culture in the experience of emerging adulthood.

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Definitions:

Femoral Hernia

A bulge near the groin or inner thigh caused by intestine pushing through a weakness in the abdominal wall into the femoral canal.

Gangrene

The death of body tissue due to either a lack of blood flow or a serious bacterial infection.

Perforation

A medical condition in which a hole or tear occurs in the wall of any part of the gastrointestinal tract or other bodily organs.

Endoscope

A flexible tube with a light and camera attached, used to examine the interior of a bodily organ or space.