How does an acquisition differ from a merger?
A) An acquisition may also be a hostile takeover while a merger usually involves the companies' mutual consent.
B) A merger is an example of internal expansion while an acquisition is an example of vertical
C) A merger results in economies of scale while an acquisition results in diseconomies of scale.
D) An acquisition is usually between two similar ?rms while a merger is between two ?rms in

Question

Quizplus · Accepted Answer

In an acquisition, one company takes over another and clearly establishes itself as the new owner, which can be done without the target company's consent, leading to a hostile takeover. A merger, on the other hand, is generally agreed upon by both companies involved, often with the goal of mutual benefits and growth, making it a process of mutual consent.

How Does an Acquisition Differ from a Merger