After an Exchange of Shares in a Business Combination, Each

question 42

Multiple Choice

After an exchange of shares in a business combination, each group of shareholders held 50% of the voting rights. Which of the following factors should be considered in determining the acquirer?

• A)Head office location
• B)Composition of the board of directors
• C)If there are material transactions between the combining companies
• D)Which company initiated the combination

---

Definitions:

Linear Demand Curve

A demand curve that shows a straight-line relationship between price and quantity demanded, suggesting a constant rate of change.

Constant Elasticity

refers to a condition in economics where the elasticity of a function, such as demand or supply, remains constant along the curve, indicating a proportional and consistent reaction to changes in other variables.

Relatively Elastic

Describes a situation where a product or service's demand or supply is significantly responsive to changes in price, indicating a greater percentage change in quantity demanded or supplied than the percentage change in price.

Total Revenue

The income generated from the sale of goods or services before any costs are subtracted.