alleryStart learning →In a merger, what is intended for the transferor's business afterwards?
ASplit into divisions
BSold to third parties
CCarried on by transferee
DClosed down promptly
Answer & Solution
Correct answer: C. Carried on by transferee
A merger requires continuity, so the transferee must intend to keep running the transferor's business.
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Related questions
In a merger, the Profit and Loss balance can alternatively go to which reserve?Consideration for amalgamation is the aggregate of securities issued and what else?AS 14 defines fair value as the amount for an asset exchange between whom?Statutory reserves keep their identity only when the transferee complies with what?When can amalgamation goodwill be amortised beyond five years?In the pooling method, conflicting accounting policies are handled how?In merger accounting, resultant assets, liabilities, capital and reserves roughly equal whIf a scheme departs from AS 14 on reserves, what must be disclosed?