Which One of the Following Statements Correctly Applies to a Legally

question 7

Multiple Choice

Which one of the following statements correctly applies to a legally defined merger?

• A) The acquiring firm retains its identity and absorbs only the assets of the acquired firm.
• B) The acquired firm is completely absorbed and ceases to exist as a separate legal entity.
• C) A new firm is created that includes all the assets and liabilities of the acquiring firm plus the assets only of the acquired firm.
• D) A new firm is created from the assets and liabilities of both the acquiring and acquired firms.
• E) A merger reclassifies the acquired firm into a new entity that becomes a subsidiary of the acquiring firm.

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Definitions:

Descent Group

Any kin group whose members share a direct line of descent from a real (historical) or fictional common ancestor.

Clan

An extended unilineal kin group, often consisting of several lineages, whose members claim common descent from a remote ancestor, usually legendary or mythological.

Lineages

Social groups or entities comprised of individuals who trace their ancestry to a common ancestor in a direct line, often playing significant roles in societies' organization.

Ancestor

A person from whom one is descended, often referred to in a familial or cultural context, and sometimes revered.