Yes, I believe your interpretation is correct.
If the question asked if he is still employed by 'old company that was bought out', then the answer would be 'no'. If the question asked if he is still employed by 'new company that bought out the old one', then the answer would be 'yes' if he does still work there.
@rocannon222
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
