The combination of two or more companies which results in the firm maintaining the identity of one of the firms is
A) consolidation.
B) merger.
C) holding company.
D) congeneric formation.

Question

Quizplus · Accepted Answer

The definition provided fits the concept of a merger, where two or more companies come together to form a new entity while maintaining the identity of one of the firms. Consolidation refers to the combination of firms resulting in the creation of an entirely new entity. A holding company is a type of firm that owns shares in other companies but does not operate them directly. Congeneric formation is not a term commonly used in business contexts.

The Combination of Two or More Companies Which Results in the Firm