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WAEC Commerce 1997 Question 46

Question 46

Business Combinations

Which of the following is true of a merger?

  1. A.Original names of the companies are retained
  2. B.Expansion is restricted
  3. C.All debts are written off
  4. D.The company formed acquires a new name
  5. E.All workers are paid bonuses.
Show the answer and explanation

Answer: D (The company formed acquires a new name)

Explanation

In a merger (amalgamation) the firms combine into one company, usually under a new name.