Fact Pattern 31-2 Dynamo Corporation Combines Its Assets and Liabilities

question 10

Multiple Choice

Fact Pattern 31-2 Dynamo Corporation combines its assets and liabilities with those of Energy Company to form Fuel Inc. Dynamo and Energy cease to exist.
Refer to Fact Pattern 31-2. With respect to the assets of Dynamo and Energy, Fuel Inc. acquires

• A) none of the assets.
• B) only those assets acquired after the combination was proposed.
• C) an amount of assets equal to the ratio of the firms' pre-merger market values.
• D) all of the assets of both companies.

---

Definitions:

LP

Stands for Linear Programming, a mathematical technique for optimizing resources and outcomes within given constraints.

Minimizing Distance

involves finding the shortest path or least total distance in routing, networking, or logistical planning to optimize efficiency.

Labour Costs

The total expenditure incurred by employers for the payment of wages, benefits, and taxes associated with the employment of labor.

Constraints

Limitations or restrictions that affect the planning, process, or outcome of a project or operation.