In a Business Combination

question 8

Multiple Choice

In a business combination:

• A) it is not necessary to identify the acquirer as long as parent entity has been identified;
• B) the parent entity will always be the acquirer;
• C) the accounting acquirer is the entity that becomes the controlling entity;
• D) the legal acquirer is the entity that becomes the controlling entity.

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Definitions:

Assigned the Lease

Assigned the lease refers to the process where an existing tenant transfers their rights and obligations under a lease agreement to another party, subject to the landlord's approval.

Pay Rent

The act of making a payment for the temporary use of a property or equipment owned by another.

Obligations

Duties or responsibilities imposed by contract, law, or societal standards that an entity or person is bound to fulfill.

Leaking Taps

A plumbing issue involving taps that drip or leak water, indicating a potential need for repair or replacement.