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:

Acceptance

The act of agreeing that something is satisfactory or adequate, often referring to the acceptance of hypotheses or theories based on evidence.

Statistic Probability

The likelihood of an event occurring based on the analysis of a set of predefined numerical data.

Null Hypothesis

In statistical testing, it's the presumption that there is no effect or difference among groups or variables being studied.

Probability

A numerical value ranging from 0 to 1, representing the chance of an event's occurrence.