What occurs when two companies join forces and become one entity?
A) an acquisition
B) a merger
C) a takeover
D) a joint venture
E) a strategic alliance

Question

Quizplus · Accepted Answer

When two companies join forces and become one entity, it is called a merger. In a merger, both companies typically combine their assets, liabilities, and operations to create a new company. This is different from an acquisition, where one company buys or takes over another company's assets and operations. A takeover typically refers to a situation where one company buys a controlling stake in another company. Joint ventures and strategic alliances involve collaborations between two or more companies, but they do not result in the formation of a new entity as in a merger.

What Occurs When Two Companies Join Forces and Become One