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Question 2: In the paragraph below, a statement contains two pairs of terms enclosed in parentheses.Determine which term in each pair correctly completes the statement. Then select the answer choice
containing the two terms that you have chosen.
One type of acquisition is called a stock purchase. In a typical stock purchase, a company acquires
(51% / 100%) of the voting shares of another company's stock, thereby making the acquired company
a subsidiary. The (acquired / acquiring) company holds all of the assets and liabilities of the acquired
company.
A. 51% / acquired
B. 51% / acquiring
C. 100% / acquired
D. 100% / acquiring
Correct Answer: C
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