Firm A and Firm B join to create Firm AB. This is an example of:
A) a tender offer.
B) an acquisition of assets.
C) an acquisition of stock.
D) a consolidation.
E) Both an acquisition of assets and an acquisition of stock.

Question

Quizplus · Accepted Answer

The combination of two or more companies to form a new company is called a consolidation or merger. Therefore, the joining of Firm A and Firm B to create Firm AB is an example of a consolidation.

Firm a and Firm B Join to Create Firm AB