Firm A and Firm B merge to form firm AB. This is an example of:
A) a tender offer.
B) an acquisition of assets.
C) an acquisition of stock.
D) a consolidation.

Question

Quizplus · Accepted Answer

When Firm A and Firm B merge to form a new entity, Firm AB, this process is known as consolidation. In a consolidation, both companies dissolve their previous legal entities and combine to form a new organization.

Firm a and Firm B Merge to Form Firm AB