There Are Many Forms of Business Combinations That Can Occur

question 28

Essay

There are many forms of business combinations that can occur, such as A acquiring the assets only of B, and B paying off the liabilities and then liquidating.Alternatively, A may acquire all the assets and only some of the liabilities of B, and B pays the remaining liabilities before liquidating. The number of possible arrangements is quite large.
What are the two exceptions where the requirements for accounting for a business combination are not used?

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Definitions:

RAID

Redundant Array of Independent Disks, a data storage virtualization technology that combines multiple physical disk drive components into one or more logical units for redundancy or performance improvement.

Fault Tolerance

The capability to continue functioning after a hardware or software failure. An example of fault tolerance with hard drives is RAID configurations.

Hard Drive

A sealed data storage medium on which information is stored. Also called a hard disk.

Virtual Memory

A method of simulating extra memory by using the hard disk space as if it were RAM.