Ha Ltd and Hee Ltd

Ha Ltd. and Hee Ltd. exchanged shares in a business combination. After the share exchange, each company held the same number of voting shares. Which of the following statements is true?

A) The company with the highest net assets is considered the acquirer.
B) The companies must ask the courts to decide which company is the acquirer.
C) A number of factors must be considered to determine which company is the acquirer.
D) There is no acquirer as this is not a proper business combination.

Correct Answer:

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