A combination of two entities in which both legally cease to exist and a new legal entity is formed is:
A)an acquisition.
B)a merger.
C)a consolidation.
D)a partnership.

Question

Quizplus · Accepted Answer

A consolidation is a combination of two entities in which both legally cease to exist and a new legal entity is formed. Merger refers to the combination of two or more entities to form a single entity, but one entity continues to exist as the surviving entity. Acquisition refers to one entity taking over the ownership of another entity, but both entities retain their legal existence. A partnership is a form of business where two or more individuals operate as co-owners of a business for profit.

A Combination of Two Entities in Which Both Legally Cease