Cengage Advantage Books: Fundamentals of Business Law Today 10th Edition by Roger LeRoy Miller

Exercise 15

In one situation, Bennett Corporation combines with Corbett Enterprises, Inc. Bennett ceases to exist, and Corbett is the surviving firm. In another scenario, Global Corporation and Hometown Company combine. Afterward, Global and Hometown cease to exist entirely. Green Springs, Inc., a new firm, functions in their place. Which of these combinations is a merger and which is a consolidation? (See Mergers and Acquisitions.)