Which of the following is true about mergers?
A) It typically occurs when a larger company purchases a smaller one.
B) It typically involves creating new products to serve existing markets.
C) It typically involves the joining of two similarly sized companies into one.
D) It typically requires a firm to enter a buyer's business.
E) It typically involves a firm entering a supplier's business.

Question

Quizplus · Accepted Answer

A merger typically involves the joining of two similarly sized companies into one, as opposed to an acquisition where a larger company purchases a smaller one.

Which of the Following Is True About Mergers