When one firm merges with another,the:
A) boards of directors will merge also.
B) merger must be approved by 75% of the shareholders of the target firm.
C) assets will be merged but the liabilities will not.
D) target firm will cease to exist as a separate public company.

Question

Quizplus · Accepted Answer

When one firm merges with another, the target firm is typically acquired by the acquiring firm and ceases to exist as a separate public company. The acquiring firm may then absorb the target firm's assets and liabilities. The boards of directors of the two firms may or may not merge, depending on the specific terms of the merger agreement. Shareholder approval is typically required, but the specific percentage required may vary depending on the jurisdiction and the terms of the merger agreement.

When One Firm Merges with Another,the