A consolidation is the combining of firms such that:
A) The acquired firm is completely absorbed by the acquirer such that the acquired firm ceases to exist.
B) The bidder and the target firms are unrelated.
C) A new firm is created and both the acquired and the acquiring firms cease to exist.
D) Vertical integration occurs.
E) Horizontal integration occurs.

Question

Quizplus · Accepted Answer

In a consolidation, both the acquiring and acquired firms cease to exist, and a new entity is formed.

A Consolidation Is the Combining of Firms Such That