Which of the Following Situations Best Describes a Business Combination

question 44

Multiple Choice

Which of the following situations best describes a business combination to be accounted for as a statutory merger?

• A)Both companies in a combination continue to operate as separate,but related,legal entities.
• B)Only one of the combining companies survives and the other loses its separate identity.
• C)Two companies combine to form a new third company,and the original two companies are dissolved.
• D)One company transfers assets to another company it has created.

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Definitions:

Reinstatement

The process of restoring a person or entity to a former position, status, or condition, often used in employment or insurance contexts.

Employer's Liability

The legal responsibility of an employer for injuries or damages suffered by employees as a result of their employment.

Course of Employment

Refers to the range of activities employees are or can reasonably be expected to be engaged in as part of their job or while working.

Fiduciary Duty

An obligation to act in the best interest of another party, typically in financial matters.