Final answer:
The claim that rights reacquired in a business combination must be written off is false. Reacquired rights are recognized as intangible assets and are amortized over their useful life. The business combination is monitored under antitrust laws to ensure fair competition.
Step-by-step explanation:
The statement that rights granted by an acquirer to an acquiree prior to a business combination, which the acquirer reacquires as part of a business combination, should be written off in connection with the acquisition transaction is False. In accounting for a business combination, reacquired rights are recognized as an intangible asset and are subsequently amortized over their useful lives. These rights may have been granted by the acquiree to the acquirer in the form of licensing or contractual rights prior to the acquisition, and when the acquisition takes place, these rights are reacquired by the acquirer and need to be accounted for separately in the financial statements.
An acquisition refers to the process where one firm buys another firm, which could also be understood as a corporate merger in some contexts where two previously independent companies combine to form a single firm. To maintain a competitive market and prevent monopolistic practices, antitrust laws play a role in ensuring that such business combinations do not unfairly restrict competition. The regulations can include reviewing mergers and acquisitions to prevent large firms from forming, regulating business practices, or breaking up large organizations into smaller entities to promote free competition.