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:

Military Unit

An organization within an armed force defined by its function, size, and hierarchical position, tasked with specific duties.

Minority Influence

The process by which a smaller part of a group changes the opinions or behavior of the larger group through persuasive argumentation and consistency.

Normative Social Influence

The impact others have on a person which causes them to adapt their behavior to gain approval and acceptance.

Informational Social Influence

The process by which individuals change their attitudes or behaviors to align with those of a group, based on the belief that the group possesses accurate information.