If an Acquirer Wishes to Keep the Identity of a Target

question 91

Multiple Choice

If an acquirer wishes to keep the identity of a target after the acquisition,it most likely will seek a

• A) statutory merger.
• B) subsidiary merger.
• C) consolidation.
• D) none of the above allow the target to keep a separate identity.

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Definitions:

Utilities Expense

The cost incurred from the consumption of utility services such as electricity, water, and gas in the business operations.

Income Summary Account

An account used in closing entries to gather all income and expense items, facilitating the transfer of their net balance to retained earnings.

Expense Accounts

Accounts used to record the costs incurred to operate a business, which are then matched against revenues to determine net income.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.