Which of the Following Type of Merger Creates Goodwill

question 93

Multiple Choice

Which of the following type of merger creates goodwill?

• A) Horizontal merger
• B) Vertical merger
• C) Pooling of interests
• D) Purchase of assets

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Definitions:

Received Cash

Funds that are taken in by the company, often from transactions such as sales, loans, or investments.

Business Entity

An organization created by one or more individuals to engage in business activities, structured as corporations, partnerships, sole proprietorships, or other forms.

Borrowed Money

Funds that an individual or entity has received from another party under the condition that it is to be repaid, typically with interest, at a later date.

Accounting Equation

The fundamental equation of double-entry bookkeeping: Assets = Liabilities + Owners' Equity, depicting a company's financial position at a specific point in time.