Two Entities a Limited and B Limited Together Form a Third

question 1

Multiple Choice

Two entities A Limited and B Limited together form a third entity, C Limited. C Limited acquires A Limited and B Limited. According to IFRS 3 Business Combinations:

• A) A Limited and B Limited cease to exist and C Limited is the acquirer;
• B) the combined A Limited and B Limited is the acquirer of C Limited;
• C) C Limited is considered to be the acquirer;
• D) C Limited is not to be considered to be the acquirer.

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Definitions:

Complementary Functions

Activities or services that add value to or enhance the effectiveness of primary products or services.

Parallel Channels

Distribution channels that run alongside each other, offering products and services to the same market segments but through different pathways or intermediaries.

Channel Strategy

The planning and execution of distributing a product or service through the most effective and efficient means to reach the end consumer.

Benchmarking

The process of measuring a company’s performance, practices, or products against those of leading competitors or industry standards to identify areas for improvement.