Which One of the Following Is a Characteristic of a Business

question 91

Multiple Choice

Which one of the following is a characteristic of a business combination accounted for as an acquisition?

• A) The combination must involve the exchange of equity securities only.
• B) The transaction establishes an acquisition fair value basis for the company being acquired.
• C) The two companies may be about the same size, and it is difficult to determine the acquired company and the acquiring company.
• D) The transaction may be considered to be the uniting of the ownership interests of the companies involved.
• E) The acquired subsidiary must be smaller in size than the acquiring parent.

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Definitions:

Recommendations

Suggestions or proposals as to the best course of action, especially one put forward by someone with expertise or authority.

External

Pertaining to factors, influences, or conditions that exist or originate outside of an organization or system.

Unsolicited Proposal

A proposal submitted to an organization without their request, often aiming to solve a problem or offer services.

Attention-Getter

An element or strategy used to capture the audience's attention at the beginning of a communication.