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

Question

Quizplus · Accepted Answer

The composition of the board of directors is a crucial factor in determining the acquirer in a business combination, especially when voting rights are equally distributed, as it indicates which group of shareholders has the ability to influence the policies and decision-making of the combined entity.

After an Exchange of Shares in a Business Combination, Each