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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