Asked by
Joseph Holmes Jr.
on Dec 01, 2024
Verified
Companies A and B combine to form Company X and cease to exist as separate entities. This is an example of ____.
A) a merger
B) an acquisition by Company A
C) a consolidation
D) an acquisition by Company B
Consolidation
The process of combining multiple accounts or businesses into a single entity, often for the purpose of financial reporting or to streamline operations.
Entities
Organizations or structures that exist as a single, identifiable unit within a particular context, such as in law, business, or accounting.
- Identify the different types of mergers and acquisitions (horizontal, vertical, conglomerate) and their characteristics.
- Recognize the implications of mergers and acquisitions on company structure (e.g., consolidation, becoming a subsidiary).
Verified Answer
EV
Learning Objectives
- Identify the different types of mergers and acquisitions (horizontal, vertical, conglomerate) and their characteristics.
- Recognize the implications of mergers and acquisitions on company structure (e.g., consolidation, becoming a subsidiary).
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