Which of the Following Is Not True About a Merger

question 12

Multiple Choice

Which of the following is not true about a merger of two not-for-profit organizations?

• A) The two organizations will continue to legally exist but there will be a new governing board.
• B) Neither organization is considered to be acquired.
• C) Identifiable assets and liabilities are not adjusted to their fair values at the date of the merger.
• D) The two entities will together form an entirely new organization with a new governing board.
• E) There will be no acquisition value or goodwill determination.

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Definitions:

Underwriters

Financial specialists who assess and undertake the risk of investment, usually in the context of issuing new securities.

Investment Banks

are specialized financial institutions that assist individuals, corporations, and governments in raising capital, offering advisory services and underwriting issuances.

Issuing Securities

The process in which new securities are created and sold to investors, typically involving bonds, stocks, or other financial instruments.

Firm Commitment Underwriting

An arrangement where an underwriter guarantees to purchase all securities offered by an issuer and assumes the risk of selling them to the market.