MacTech Corporation Is a Subsidiary of Clickon Corporation,which Owns 90

question 71

Multiple Choice

MacTech Corporation is a subsidiary of Clickon Corporation,which owns 90 percent of MacTech's shares.The management of Clickon is not happy with the way MacTech is being managed.They believe that MacTech is losing out on a huge chunk of potential business to rivals due to mismanagement.As a solution,the board of directors of Clickon approves a merger between Clickon and MacTech and they send a copy of the merger plan to MacTech's shareholders.This form of merger is called a(n) :

• A)semi-merger.
• B)short-form merger.
• C)incomplete merger.
• D)half-merger.

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Definitions:

Assets Test

A financial measure used to determine eligibility for certain government benefits based on the value of one's assets.

Profit Test

A determination to assess the viability and profitability of a project or investment by comparing costs against potential benefits.

Reportable Segments

Parts of a business that have separate financial information available, which can be evaluated regularly by the company's chief operating decision-maker in deciding how to allocate resources and in assessing performance.

Profits

The financial gain remaining after subtracting all expenses, taxes, and costs from total revenue.