Which of the following is true of mergers?
A)A new legal entity is established.
B)A target firm becomes a unit of the acquiring firm.
C) Control of assets is turned over from one firm to its partner.
D) Mergers are much more common than acquisitions.

Question

Which of the following is true of mergers?
A)​A new legal entity is established.
B)​A target firm becomes a unit of the acquiring firm.
C) ​Control of assets is turned over from one firm to its partner.
D) ​Mergers are much more common than acquisitions.

Quizplus · Accepted Answer

In a merger, two companies combine to form a new legal entity, which is distinct from acquisitions where one company absorbs another.

Which of the Following Is True of Mergers