The Complete Absorption of One Company by Another, Where the Acquiring

question 303

Multiple Choice

The complete absorption of one company by another, where the acquiring firm retains its identity and the acquired firm ceases to exist, is called a __________.

• A) Merger.
• B) Consolidation.
• C) Tender offer.
• D) Spinoff.
• E) Divestiture.

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Definitions:

Framing

Whether messages stress potential gains (positively framed) or potential losses (negatively framed).

Positives

Refers to the aspects or qualities considered to be favorable, good, or beneficial in a situation or entity.

Reduced Price

A lowered cost or value of an item or service, typically to encourage purchase or due to decreased demand.

Cognitive Miser

A term used to describe people’s reluctance to do much extra thinking.