A combination of two entities in which only one legally ceases to exist is:
A)a subsidiary.
B)a parent company.
C)a consolidation.
D)a merger.

Question

Quizplus · Accepted Answer

A merger is a combination of two entities in which one ceases to exist as a separate legal entity and becomes part of the surviving entity. In contrast, a subsidiary is a separate legal entity controlled by another company, while a parent company is a company that has control over another company or multiple companies. A consolidation involves the creation of a new entity from the merging of two or more companies.

A Combination of Two Entities in Which Only One Legally