Question 16 (4 points) Listen In the context of a legally defined merger, which one of the following statements is correct? 1) The acquired firm retains its identity and absorbs only the assets of the acquiring firm O2) The acquired firm is completely absorbed and ceases to exist as a separate legal entity 3) A new firm is created from the assets and liabilities of both the acquiring and acquired firms 4) A new firm is created which includes all the assets and liabilities of the acquiring firm plus the assets only of the acquired firm