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:

Business Employees

Individuals working within a company or organization performing various roles related to its operations, strategy, and financial performance.

IT Employees

Individuals who work within the information technology field, focusing on the management, support, and maintenance of computer systems and networks.

Business Managers

Professionals responsible for planning, controlling, and overseeing the operations and activities within a business to achieve organizational goals.

IT Managers

IT managers are professionals responsible for overseeing and managing the information technology (IT) resources and personnel within an organization, ensuring the effective and efficient utilization of technology.