The Difference Between a Merger and an Acquisition Is

question 105

Multiple Choice

The difference between a merger and an acquisition is:

• A)A merger does not combine the assets and liabilities of firms,whereas an acquisition combines assets and liabilities.
• B)A merger combines the assets of the two firms,but each company continues to assume its own liabilities,whereas an acquisition is a total buyout of one firm by another.
• C)A merger is the joining of resources of two companies,whereas an acquisition is a buyout of one firm by the other.The new company concerns itself with merging of resources.
• D)A merger is always something smaller tagging onto something larger,like a merging lane onto an interstate,whereas an acquisition is two firms that are relatively the same size agreeing to continue as one - more like two major interstates that come together and travel as one for several miles.

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Definitions:

Algebraic Expression

A mathematical phrase that can include numbers, variables, and operation symbols but does not have an equals sign.

Janitorial Department

The division or section within an organization responsible for maintaining the cleanliness, order, and upkeep of the premises.

Maintenance Department

A functional area within an organization responsible for the upkeep of physical assets, machinery, and buildings.

Support Department Costs

Expenses that are not directly tied to the production of goods or services but are necessary for supporting the operations of a business, like IT or HR departments.