Terminology Indicate the appropriate term or terms for each of the following:

1. The expansion of a business by constructing a manufacturing facility.

2. A business combination in which a company acquires one of its suppliers.

3. A business combination in which a company acquires one of its competitors.

4. A business combination in which a company acquires businesses to diversify its product lines.

5. The broad terms used to refer to business combinations.

6. A business combination in which the target company’s corporate existence is terminated in conjunction with the transfer of assets and liabilities to the acquiring company.

7. A business combination in which a new corporation is formed to acquire the businesses of two existing corporations.

8. The method of accounting for business combinations as set forth in FAS 141.

9. The two types of assets that can be acquired in a business combination.

II. An acquired business that maintains its separate legal existence.

12. An acquiring business that acquires common stock of the acquired business, the latter main¬

taining its separate legal existence.

13. An acquired business that ceases to be a separate legal entity but continues to use a separate general ledger.

14. The primary type of consideration given in a business combination that is accounted for as a purchase.