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A reverse merger generally involves:
AA larger firm being absorbed into a smaller firm to use its listing
BAn acquirer being absorbed into the target as a defence
CReversing a prior merger by court order
DA vertical reversal of supply chain ownership
Answer & Solution
Correct answer: A. A larger firm being absorbed into a smaller firm to use its listing
1. Identify what the question asks: this concept maps to reversemerger (§6).
2. Apply the framework or formula relevant to the topic.
3. Eliminate distractors and arrive at the correct option (A).
_Source: ICAI BoS CA Final Paper 2, Ch 14 "Mergers Acquisitions and Corporate Restructuring"_
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