A business combination may be legally structured as a merger, a consolidation, or an acquisition. Which of the following describes a business combination that is legally structured as a merger? OA parent-subsidiary relationship is established The surviving company is one of the two combining companies. The surviving company is neither of the two combining companies. An investor-investee relationship is established.

Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter8: Investing Activities
Section: Chapter Questions
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A business combination may be legally structured as a merger, a consolidation, or an acquisition. Which of the following describes a
business combination that is legally structured as a merger?
O A parent-subsidiary relationship is established
The surviving company is one of the two combining companies.
The surviving company is neither of the two combining companies.
An investor-investee relationship is established.
Transcribed Image Text:A business combination may be legally structured as a merger, a consolidation, or an acquisition. Which of the following describes a business combination that is legally structured as a merger? O A parent-subsidiary relationship is established The surviving company is one of the two combining companies. The surviving company is neither of the two combining companies. An investor-investee relationship is established.
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