Two catering companies that join to form a new, larger catering company are an example of a(n) ________.
A) merger
B) acquisition
C) wholly owned direct investment
D) greenfield investment

Question

Quizplus · Accepted Answer

A merger is the combination of two companies to form a new company. In this case, two catering companies are joining to form a new, larger catering company. An acquisition would be if one catering company bought out the other catering company. Wholly owned direct investment and greenfield investment are not relevant to this scenario.

Two Catering Companies That Join to Form a New, Larger