Hubbard,Rice and Galvin define a merger as:
A)a mutually agreed consolidation under joint ownership of two independent entities
B)an exchange of shares between two related parties
C)the purchase of 66% of shares to obtain decision-making control over another organisation
D)an activity engaged in to stimulate stock market waves

Question

Quizplus · Accepted Answer

Hubbard, Rice, and Galvin define a merger as a mutually agreed consolidation under joint ownership of two independent entities. This definition aligns with the commonly accepted understanding of what a merger is, where two companies combine to form a single entity with shared ownership and control. Option B describes a stock swap, while option C describes an acquisition. Option D is unrelated to the definition of a merger.

Hubbard,Rice and Galvin Define a Merger As