Ha Ltd and Hee Ltd

question 9

Multiple Choice

Ha Ltd. and Hee Ltd. exchanged shares in a business combination. After the share exchange, each company held the same number of voting shares. Which of the following statements is true?

• A)The company with the highest net assets is considered the acquirer.
• B)The companies must ask the courts to decide which company is the acquirer.
• C)A number of factors must be considered to determine which company is the acquirer.
• D)There is no acquirer as this is not a proper business combination.

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Definitions:

Energized Circuit

A circuit that is under voltage and capable of providing electrical power to connected devices or equipment.

Extended Periods

Lengthy durations or time frames, often referring to the operation or application of something over a long period.

Centrifugal Switch

A device that opens or closes an electrical circuit based on the speed of the rotating shaft, commonly used in motors.