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:

MBA

Master of Business Administration, a graduate degree that focuses on business administration and investment management.

Marketing Exchange

The process by which two or more parties trade goods, services, or ideas in a way that benefits both sides, often involving monetary transactions.

Dairy Case

A refrigerated section in a grocery store where dairy products, such as milk, cheese, and yogurt, are displayed and stored.

Organic Foods

Food products made from materials produced without the use of synthetic pesticides, chemical fertilizers, genetically modified organisms, or processes that rely on irradiation or industrial solvents.