Asked by
taylor westcott
on Dec 08, 2024
Verified
A merger can best be defined as:
A) A combination of firms that have been joined by merger, consolidation or acquisition.
B) The complete absorption of one company by another, where the acquiring firm retains its identity and the acquired firm ceases to exist as a separate entity.
C) A merger in which a new firm is created and both the acquired and acquiring firm cease to exist.
D) A public offer by one firm to directly buy the shares from another.
E) A corporate takeover bid communicated to the shareholders through direct mail.
Merger
The combination of two or more companies into a single entity, often with the goal of achieving synergies or efficiencies.
Consolidation
The process of combining multiple entities, assets, or financial statements into a single entity or set of financial statements.
Acquisition
The process by which one company takes over controlling interest in another company, which may involve purchasing assets or a majority of its stock.
- Identify and make distinctions between the various classifications of mergers and acquisitions, like horizontal, vertical, and conglomerate.
Verified Answer
AR
Learning Objectives
- Identify and make distinctions between the various classifications of mergers and acquisitions, like horizontal, vertical, and conglomerate.