The combination of two or more companies to form a completely new corporation is a ________.
A) congeneric formation
B) consolidation
C) spin-off
D) conglomerate merger

Question

Quizplus · Accepted Answer

A consolidation is the combination of two or more companies to form a completely new corporation, with a new name, ownership, and management structure. A conglomerate merger involves the combination of unrelated businesses, a spin-off is the creation of a new company from a division or part of an existing company, and a congeneric formation involves the combination of companies in the same or related industries.

The Combination of Two or More Companies to Form a Completely