Bob's Grocery merges with Pete's Produce and becomes PB Foods.The transaction is a:

Question

Quizplus · Accepted Answer

A merger refers to the combination of two companies to form a new entity, while a consolidation refers to the combination of two companies to form a wholly new entity. In this case, Bob's Grocery and Pete's Produce are combining to form a new entity called PB Foods, making it a consolidation. A tender offer involves one company making an offer to buy another company's shares directly from shareholders. Therefore, the correct choice is B.

Bob's Grocery Merges with Pete's Produce and Becomes PB Foods