When Sears and Kmart, two retail firms of relatively equal size in the United States, agreed to combine their assets, this was an example of a(n)
A) joint venture.
B) acquisition.
C) merger.
D) equity agreement.

Question

Quizplus · Accepted Answer

The combination of Sears and Kmart's assets is a merger, as both firms agreed to come together and create a new entity. This is different from an acquisition where one firm purchases another, or a joint venture where two firms join forces for a specific project or goal. An equity agreement is also not applicable as it refers to a financial arrangement between two parties for investment or ownership purposes.

When Sears and Kmart, Two Retail Firms of Relatively Equal