A Merger in Which an Entirely New Firm Is Created

question 63

Multiple Choice

A merger in which an entirely new firm is created, with both the acquired and acquiring firms ceasing to exist, is called a _________________.

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

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Definitions:

Systematically Larger

Relating to something that consistently exhibits larger values or sizes than others within a set or compared to a benchmark.

Normal Approximation

A method used in statistics to approximate a binomial distribution with a normal distribution when the sample size is large enough.

Continuity Correction

An adjustment made when approximating a discrete distribution with a continuous distribution, often used when applying the chi-square test to binomial or Poisson distributions.

Female Group

A specific cohort or assembly consisting exclusively of female participants or subjects.