1. The incremental cash flow principle claims that sunk costs must be taken into

1. The incremental cash flow principle claims that sunk costs must be taken into account in the firms decision whether to accept or reject a project.2. The terms acquisition and takeover are often used to refer to a merger because the stock of the firm that goes out of existence is usually acquired by the continuing firm.3. A consolidation occurs when all of the combining legal entities dissolve and a new entity with a new name is formed to continue into the future.4. The category of business combination where the firms have a supplier-customer relationship is known as a