Which One of the Following Statements Correctly Applies to a Legally

question 40

Multiple Choice

Which one of the following statements correctly applies to a legally defined merger?

• A)The acquiring firm retains its identity and absorbs only the assets of the acquired firm.
• B)The acquired firm is completely absorbed and ceases to exist as a separate legal entity.
• C)A new firm is created which includes all the assets and liabilities of the acquiring firm plus the assets only of the acquired firm.
• D)A new firm is created from the assets and liabilities of both the acquiring and acquired firms.
• E)A merger reclassifies the acquired firm into a new entity which becomes a subsidiary of the acquiring firm.

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Definitions:

Esteem Needs

According to Maslow's hierarchy of needs, these are the requirements for respect, self-esteem, and respect from others, crucial for an individual's well-being.

Public Rewards

Recognition or incentives given to individuals or groups in a public setting, aimed at reinforcing certain behaviors or achievements.

Self-actualization Needs

Abraham Maslow's hierarchy's highest level, where individuals seek to realize their personal potential and achieve peak experiences.

Achievement Motive

The intrinsic drive to excel, achieve in relation to a set of standards, and strive to succeed or reach a high standard of performance.