What Is the Key Difference Between a Merger and an Acquisition

question 20

Multiple Choice

What is the key difference between a merger and an acquisition?

• A)The target firm ceases to exist after a merger, but can continue on after an acquisition.
• B)The target firm ceases to exist after an acquisition, but can continue on after a merger.
• C)An acquisition requires the approval of both sets of shareholders from the two firms.
• D)There is no difference between a merger and an acquisition.