Which of the following would not be considered a Business Combination?
A)A Company purchases B Company's only manufacturing facility for $1,000,000 or 80% of B's total assets.
B)A company purchases one of B's old/abandoned warehouses.
C)Two of Company A's subsidiaries engage in a share exchange without consulting the Parent Company.
D)Neither the purchase of an old abandoned warehouse,nor the exchanging of shares between subsidiaries of the same Parent Company qualify as Business Combinations.

Question

Quizplus · Accepted Answer

A business combination involves the merging of separate entities or businesses into one reporting entity. The purchase of an old warehouse or internal share exchanges between subsidiaries do not qualify as business combinations.

Which of the Following Would Not Be Considered a Business