A combination of two or more companies that results in a firm maintaining the identity of one of the firms is ________.
A) amalgamation
B) consolidation
C) merger
D) a holding company

Question

Quizplus · Accepted Answer

A merger is the combination of two or more companies where one of the firms maintains its identity. In a consolidation, the merging firms cease to exist and a new entity is created. Amalgamation is a term used in accounting to describe the consolidation of financial statements of two or more organizations into a single set of financial statements. A holding company is a company that owns other companies' outstanding stock.

A Combination of Two or More Companies That Results in a Firm