Entity a and Entity B Agree to Merge

question 6

Multiple Choice

Entity A and Entity B agree to merge. The capital structure of each entity is:
Entity A - 100 ordinary shares
Entity B - 60 ordinary shares
Entity A issues 2.5 shares in exchange for each ordinary share of Entity B. All of Entity B's shareholders exchange their shares for Entity A shares.
Which of the following statement is correct?

• A) Entity A is both the parent and the acquirer in the transaction.
• B) Entity B is both the parent and the acquirer in the transaction.
• C) Entity A is the legal parent of the subsidiary Entity B and Entity B is the acquirer in the transaction.
• D) Entity B is the parent and Entity A is the acquirer in the transaction.

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Definitions:

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Regulations that specify the standards for constructed objects such as buildings and nonbuilding structures to ensure safety and health standards are met.

Sound Amplifying Systems

refer to electronic equipment used to increase the volume of sound, often used in public addresses, concerts, or broadcasting.

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