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 ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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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