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.

Comprehend the role and benefits of core values in an organisation.

Identify the characteristics and importance of core competencies within an organisation.

Understand the process and elements involved in conducting a SWOT analysis.

Recognise the various types of organisational objectives and their significance.

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Definitions:

Intra-Entity Transfer

Transactions involving the transfer of assets or liabilities between divisions within the same company.

Consolidation Process

The procedure of combining and presenting the financial results of several subsidiaries and the parent company as one cohesive financial statement.

Noncontrolling Interest

The portion of equity interest in a subsidiary not held by the parent company.

Downstream Transfers

Transactions involving the transfer of goods or services from a parent company to a subsidiary or among subsidiaries.