Two entrepreneurs saw that they both could gain by combining their separate companies into one. They would re-name the company and both would be managers in it. This represents
A) a merger.
B) an acquisition.
C) a buy-out.
D) a noncompete agreement.
E) a low-growth strategy.

Question

Quizplus · Accepted Answer

A merger is a combination of two or more companies, often of similar size, to form a single new company. In this case, the entrepreneurs are combining their separate companies into one and becoming managers in the new company, which is a classic example of a merger.

Two Entrepreneurs Saw That They Both Could Gain by Combining