Question

When is a statutory merger created?

What is a definition of Goodwill?

Answer 1

When is a statutory merger created?

A statutory merger is a business combination in which two entities combine and one entity continually enjoys legal status whereas other entity loses its legal status independent identity. It started working in the name of the company in which it is combined. A statutory merger is created by organizations

1. To get benefit of financial and organizational efficiencies
2. To beat its competitors

A Statutory merger has been created for the best interest of either entity, their members.

What is a definition of Goodwill?

It is an intangible asset and it arises when one company purchases another for a premium value. It arises when one company acquires another entire business. The amount of goodwill is calculated as the cost to purchase the business less the fair market value of tangible assets, intangible assets and the liabilities.