Which of the Following Is Not True About a Merger

question 39

Multiple Choice

Which of the following is not true about a merger of two not-for-profit entities?

• A) The two entities will continue to legally exist but there will be a new governing board.
• B) Neither entity is considered to be acquired.
• C) Identifiable assets and liabilities are not adjusted to their fair values at the date of the merger.
• D) The two entities will together form an entirely new entity with a new governing board.
• E) There will be no acquisition value or goodwill determination.

---

Definitions:

Torts against Property

Legal wrongs that result in harm to someone's property, including acts such as trespassing, vandalism, and theft.

Torts against Economic Interest

Legal wrongs committed that cause financial harm or damage to a person’s economic position.

Strict-liability

A legal doctrine in tort law that holds a party responsible for their actions or products, without the need to prove negligence or fault.

Inherently Dangerous

Activities or items possessing potential for significant harm due to their nature.