A combination in which all of the combining companies are dissolved and a new firm is formed is a:
A)holding company.
B)leveraged buyout.
C)consolidation.
D)composition.

Question

Quizplus · Accepted Answer

A consolidation occurs when all of the combining companies are dissolved and a new firm is formed. A holding company is a type of business organization that owns stock in other companies, but does not necessarily dissolve them. A leveraged buyout is a type of acquisition in which a large amount of debt is used to finance the purchase of a company. A composition is a legal agreement between a debtor and creditor to reform payment terms for outstanding debts.

A Combination in Which All of the Combining Companies Are