In a Business Combination Involving Two Companies,when Can a Company

question 62

Multiple Choice

In a Business Combination involving two companies,when can a company ALWAYS be deemed to be the acquirer?

• A)The company is significantly larger than the other.
• B)The company holds more than 50% of the voting shares of the combined entity.
• C)The company has a larger Board of Directors
• D)A company can be deemed to be the acquirer only when it holds 50% of the voting shares of the combined entity AND has a larger Board of Directors than the other company.

---

Definitions:

Patented Technologies

Innovations protected by legal rights, granting the patent holder exclusive use and commercial benefits.

High Capital Requirements

The need for significant financial investment to start or maintain operations in certain industries or business activities.

Limited Distribution Channels

A situation where a product or service has a small number of outlets or platforms through which it can reach customers.

Industry Analysis

An examination of the economic and market forces that affect the competitiveness within an industry.