An organization ceases to exist as a separate entity and is absorbed into the purchasing corporation.

Question

Quizplus · Accepted Answer

The given scenario describes an acquisition where one company takes over another and the acquired company ceases to exist as a separate entity. In a merger, two companies combine to create a new entity whereas in a joint venture, two companies come together for a specific project or venture while still remaining separate entities. An alliance is a strategic partnership between two companies to achieve mutually beneficial goals, but it does not involve one company being absorbed by another.

An Organization Ceases to Exist as a Separate Entity and Is