The Difference Between a Merger and an Acquisition Is

question 100

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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