Which One of the Following Is a Characteristic of a Business

question 91

Multiple Choice

Which one of the following is a characteristic of a business combination accounted for as an acquisition?

• A) The combination must involve the exchange of equity securities only.
• B) The transaction establishes an acquisition fair value basis for the company being acquired.
• C) The two companies may be about the same size, and it is difficult to determine the acquired company and the acquiring company.
• D) The transaction may be considered to be the uniting of the ownership interests of the companies involved.
• E) The acquired subsidiary must be smaller in size than the acquiring parent.

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Definitions:

Chromosome Combination

The specific arrangement of chromosomes received from both parents that determines genetic traits.

Testes

The male reproductive glands responsible for producing sperm and the hormone testosterone.

Y Chromosome

A sex chromosome that is typically present in males, carrying genes that determine male sexual traits and development.

X Chromosome

One of the two types of sex chromosomes, present in both males and females, that plays a key role in determining genetic traits and sex.