Use the Following Statements to Answer the Question

Use the following statements to answer the question:

A) I is correct and II is correct.
B) I is incorrect and II is incorrect.
C) I is correct and II is incorrect.
D) I is incorrect and II is correct.
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.