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.

Q: Describe the following terms: 1. A merger 2. An acquisition

A: Mergers & Acquisitions :(M&A)Mergers and acquisitions (M&A) refer to the consolidation…

Q: The term ‘business combination’ is defined in AASB 3/IFRS 3 Business Combinations to include:…

A: Business Combination: Transactions in which one acquirer takes over another company are known as…

Q: Define strategic alliance and joint venture, and explain whya company would choose these options…

A: Strategic alliance and Joint venture are arrangements for co-operation between two or more business…

Q: Which of the following is an example of a transaction where a parent’s ownership interest in a…

A: Transactions  that will change  the ownership interest in subsidiary  but not the controlling…

Q: Why would a company implement this upon acquisitions: "All significant intercompany transactions and…

A: Due to the growth and investing strategies of the company a company can invest into another company…

Q: Distinguish between a merger and an acquisition what is the significance of the distinction

A: Q1: Distinguish between a merger and an acquisition?Answer:The primary distinction between a merger…

Q: Define each of the following terms:d. Operating merger; financial merger

A: Merger refers to the process whereby two or more companies come together to form a single entity. In…

Q: One reason for mergers include possible synergies . Name and explain two types of synergies that…

A: Synergy- If the merger of two firm can create greater efficiency or scale, the effect  is referred…

Q: The combination of resources through a partnership arrangement rather than through a legal…

A: Joint venture is an enterprise in which resources of two or more companies are combined to…

Q: What does it mean that the members of the joint venture company can retain own separate identity ??

A: JV termed as Joint Venture which is defined as the arrangement of business in which two or more than…

Q: Define each of the following terms:c. Friendly merger; hostile merger; defensive merger; tender…

A: A merger in which merger is approved by both the companies is called friendly merger. A situation…