A Form of Business Combination in Which Two (Unaffiliated) Companies

question 48

Multiple Choice

A form of business combination in which two (unaffiliated) companies contribute financial and/or physical assets, as well as personnel, to a new company to engage in some economic activity is known as a ____.

• A) joint venture
• B) conglomerate merger
• C) merger
• D) consolidation

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Definitions:

Best Interest

A principle requiring decisions to be made in the welfare or benefit of those affected, commonly used in legal, financial, and fiduciary contexts.

Commit

To pledge or bind oneself to a certain course or policy; often implies dedicating resources or time.

Nash Equilibrium

A concept within game theory where no player can benefit by changing strategies while the other players keep theirs unchanged.

Gas Pump

A device at a gas station that dispenses fuel for vehicles.