In a true merger,not a consolidation,the acquirer
A)and the target firm become a new firm with a new name.
B)accepts the responsibility for the debts of the target firm.
C)ceases to exist as a separate firm.
D)obtains only the assets of the target firm.
E)is totally absorbed by the acquired firm.

Question

Quizplus · Accepted Answer

In a true merger, the acquirer takes on the responsibility for the debts of the target firm, as the two companies combine into one entity, with the acquirer typically surviving and the target firm being absorbed.

In a True Merger,not a Consolidation,the Acquirer