For Financial Reasons, Two Not-For-Profit Hospice Organizations (Hospices a and B)

question 55

Multiple Choice

For financial reasons, two not-for-profit hospice organizations (hospices A and B) decided to combine. As a result of the combination, the assets and liabilities of the combined hospice were reported at the amounts that had been previously reported by A and B on their financial statements. Under the FASB, the combining of hospices A and B would be classified as which of the following?

• A) Merger.
• B) Consolidation.
• C) Acquisition.
• D) Component unit.

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Definitions:

Economic Prosperity

A state of economic health and stability characterized by strong GDP growth, low unemployment, and high standards of living.

Foreign Direct Investment

An investment made by a firm or individual in one country into business interests located in another country, typically involving ownership of assets.

Population Growth Rate

The rate at which the number of individuals in a population increases in a given time period as a result of births, deaths, and migration, usually expressed as a percentage.

Developed Countries

Nations with relatively high levels of economic growth and security, characterized by strong infrastructure, high gross domestic product per capita, and generally high standards of living.