A business merger differs from a business consolidation because
A)a merger dissolves all but one of the prior entities,but a consolidation dissolves all of the prior entities.
B)a consolidation dissolves all but one of the prior entities,but a merger dissolves all of the prior entities.
C)a merger is created when two entities join,but a consolidation is created when more than two entities join.
D)a consolidation is created when two entities join,but a merger is created when more than two entities join.

Question

Quizplus · Accepted Answer

A business merger involves combining two or more separate entities into one, creating a new entity. In a merger, one or more of the prior entities will cease to exist, while the surviving entity continues to operate. In contrast, a business consolidation involves combining two or more entities into a new entity where all of the prior entities cease to exist. Therefore, option A is correct as it correctly clarifies the difference between a merger and a consolidation.

A Business Merger Differs from a Business Consolidation Because