Question 2 Diversification acquisition is a corporate action whereby a company takes a controlling interest in another company to expand its product and service offerings. One way to determine if a takeover comes under diversification acquisition is to look at the two companies standard Industrial Classification (SIC) codes. When the two codes differ, it that they conduct dissimilar business activities. The acquirer may believe the unrelated company unlocks synergies that promote growth or reduce prevailing risks in other operations. Mergers and Acquisitions (M&A) often take place to complement existing business operations in the same industry. means a) Define 'Consolidated Financial Statements'. (4m) b) Elaborate the ways to determine that an acquire is a subsidiary. (4m) c) State any TWO (2) reasons of preparing Consolidated Financial Statements. (4m) d) State any TWO (2) reasons of preparing Consolidated Income Statements. (4m)