Assertion :Rationalisation aims at eliminating waste and/in efficiency through business combinations and other scientific methods. Reason: Business combination is a precondition for any effort towards rationalisation.

Both Assertion and Reason are correct and Reason is the correct explanation for Assertion

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Both Assertion and Reason are correct but Reason is not the correct explanation for Assertion

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Assertion is correct but Reason is incorrect

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Assertion is incorrect but Reason is correct

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Solution

The correct option is C Assertion is correct but Reason is incorrect
A business combination is a transaction in which the acquirer obtains control of another business (the acquiree). Business combinations are a common way for companies to grow in size, rather than growing through organic (internal) activities.
In any business combination, it is important to identify the acquirer for accounting purposes (the 'accounting acquirer'). This involves identifying the combining entity that has, in substance, obtained control of the other. ... The fair value exercise is performed on the assets and liabilities of the accounting acquiree

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