Which of the following statements is correct?
A)for any business combination,one of the combining entities must be identified as the acquirer
B)the acquirer is defined as the business or businesses the acquiree obtains control of in a business combination
C)for any business combination,both of the combining entities must be identified as the acquirer
D)the acquiree is the entity that obtains control of the acquirer

Question

Quizplus · Accepted Answer

In a business combination, one entity (the acquirer) is always identified as the entity that obtains control over the other (the acquiree), not the other way around or as a mutual acquisition.

Which of the Following Statements Is Correct