Which one of the following statements correctly applies to a legally defined merger?
a. The acquiring firm retains its identity and absorbs only the assets of the acquired firm.
b. The acquired firm is completely absorbed and ceases to exist as a separate legal entity.
c. A new firm is created that includes all the assets and liabilities of the acquiring firm plus the assets only of the acquired firm.
d. A new firm is created from the assets and liabilities of both the acquiring and acquired firms.
e. A merger reclassifies the acquired firm into a new entity that becomes a subsidiary of the acquiring firm.
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