Asked by
yashpreet kaur sandhu
on Oct 16, 2024
Verified
After an exchange of shares in a business combination, each group of shareholders held 50% of the voting rights. Which of the following factors should be considered in determining the acquirer?
A) Head office location
B) Composition of the board of directors
C) If there are material transactions between the combining companies
D) Which company initiated the combination
Voting Rights
The entitlement of shareholders to vote on corporate matters, such as the election of the board of directors, at shareholder meetings.
Business Combination
The process of merging two or more companies into one entity, usually to expand market share or diversify risk.
- Determine the acquirer in various business combination scenarios.
Verified Answer
CR
Learning Objectives
- Determine the acquirer in various business combination scenarios.