Solved

The Difference Between a Merger and an Acquisition Is That

Question 42

Multiple Choice

The difference between a merger and an acquisition is that


A) a merger involves one company purchasing the assets of another company with cash, whereas an acquisition involves a company acquiring another company by buying all of the shares of its common stock.
B) a merger is a pooling of equals whereas an acquisition involves one company, the acquirer, purchasing and absorbing the operations of another company, the acquired.
C) in a merger the companies retain their original names whereas in an acquisition the name of the company being acquired is changed to be the name of the acquiring company.
D) a merger is a combination of three or more companies whereas an acquisition is a pooling of interests of just two companies.
E) a merger involves two or more companies deciding to adopt the same strategy whereas an acquisition involves one company taking over the strategy-making function of another company.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions