Cloud Inc Merges with Data Corporation

question 64

Multiple Choice

Cloud Inc. merges with Data Corporation. Cloud, the surviving corporation, issues shares or pays fair consideration to

• A)Cloud's shareholders.
• B)Data's shareholders.
• C)the state.
• D)no one.

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Definitions:

Peer Group

A set of companies or individuals used as a point of reference for performance comparison or benchmarking.

Cash Ratio

A liquidity ratio that measures a company's ability to pay off short-term liabilities with cash and cash equivalents, providing insight into its immediate financial health.

Statement Of Cash Flows

The Statement of Cash Flows is a financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.

Current Assets

Short-term financial resources that a company expects to turn into cash within one year.