Which of the following occurs when two firms combine to create a new company?
A) Acquisition
B) Takeover
C) Venture
D) Divestiture
E) Merger

Question

Quizplus · Accepted Answer

A merger occurs when two firms combine to create a new company. The other options are not applicable for this scenario: 
-Acquisition is when one company buys another 
-Takeover is when one company takes control of another 
-Venture is when two or more companies agree to work together on a specific project or business endeavor 
-Divestiture is when a company sells off a part of its business or division.

Which of the Following Occurs When Two Firms Combine to Create