Which of the Following Statements Regarding Reverse Mergers Is True

question 29

Multiple Choice

Which of the following statements regarding reverse mergers is true?

• A)In a reverse merger, money flows out of the public sector into the private sector.
• B)In a reverse merger, a large, publicly-held company spins off one of its divisions, which itself becomes a publicly-traded company.
• C)A reverse merger is a method of making a publicly-held firm private once again.
• D)In a reverse merger, a large, privately-held firm merges with a smaller firm that is publicly-held.