In 1999, two pharmaceutical companies that shared an equal market share decided to pool their operations to create a new firm that was known by a different name.This is an example of a(n):
A)merger.
B)acquisition.
C)procurement.
D)take over.
E)dissolution.

Question

Quizplus · Accepted Answer

A merger occurs when two companies combine their operations to form a new company with a different name. This is exactly what happened in this scenario. An acquisition involves one company acquiring another company, while a takeover involves one company taking control of another company by buying a controlling share of its stock. Procurement refers to the process of purchasing goods or services, and dissolution refers to the process of ending a company's operations.

In 1999, Two Pharmaceutical Companies That Shared an Equal Market