The complete absorption of one company by another,wherein the acquiring firm retains its identity and the acquired firm ceases to exist as a separate entity,is called a:
A)merger.
B)consolidation.
C)tender offer.
D)spinoff.
E)divestiture.

Question

Quizplus · Accepted Answer

A merger is when one company is completely absorbed by another, and the company that is absorbed ceases to exist as an independent entity. The acquiring company retains its identity, making "merger" the correct term for this process.

The Complete Absorption of One Company by Another,wherein the Acquiring