Pacific Surfware acquired Surferdude and as part of the transaction both of the firms ceased to exist in their form prior to the transaction and combined to create an entirely new entity, Wildly Exotic Surfware. Which one of the following terms best describes this transaction?
A) Divestiture
B) Tender offer
C) Joint venture
D) Spinoff
E) Consolidation

Question

Quizplus · Accepted Answer

This transaction is a consolidation, as two separate entities were combined to create a new entity.

Pacific Surfware Acquired Surferdude and as Part of the Transaction