Cassius Ltd and Brutus Ltd Agreed to Merge by Forming

question 9

Multiple Choice

Cassius Ltd and Brutus Ltd agreed to merge by forming another company,Casca Ltd,which acquired all of the share capital of the two companies in a share exchange.Cassius Ltd was a much larger company than Brutus Ltd with several large equity stakeholders so that the Board of Cassius Ltd emerged from the business combination with the power to dominate the operating and financial policies of the merged entity.Based on these facts:

• A) Casca Ltd must be the acquiring entity since it acquired the share capital of Cassius Ltd and Brutus Ltd.
• B) Cassius Ltd is the acquiring entity since its management emerges as the dominant power in the merged entity.
• C) Neither Cassius Ltd nor Brutus Ltd can be the acquiring entity since their equity securities have been acquired by Casca Ltd.
• D) None of the above.

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Definitions:

Absenteeism

The practice of regularly staying away from work or school without good reason, often measured to assess employee or student engagement and satisfaction.

Chronic Job Stress

Persistent stress experienced over a prolonged period due to work-related factors, leading to negative impacts on health and well-being.

Homicidal Feelings

Intense emotions or thoughts that involve the desire or inclination to commit murder.

PTSD

Post-Traumatic Stress Disorder (PTSD) is a psychological condition triggered by experiencing or witnessing traumatic events, leading to symptoms like flashbacks, nightmares, and severe anxiety.