Use the following statements to answer the question:
I.A merger is the combination of two companies into a new entity.
II.An amalgamation is the exchange of shares in the old companies for shares in the new entity.
A)I and II are both correct.
B)I and II are both incorrect.
C)I is correct and II is incorrect.
D)I is incorrect and II is correct.

Question

Quizplus · Accepted Answer

Statement I defines a merger correctly as the combination of two companies into a new entity. Statement II correctly describes the process of amalgamation where shares in the old companies are exchanged for shares in the new entity. Therefore, both statements are correct.

Use the Following Statements to Answer the Question