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:

Birth

The event of being born or coming into existence.

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In animals, three embryonic tissue layers: endoderm, mesoderm, and ectoderm

Echinoderms

A phylum of marine animals characterized by radial symmetry, a calcareous skeleton, and a water vascular system, includes starfish and sea urchins.