A(n)_________ Describes the Joining of Two Independent Companies to Form

question 71

Multiple Choice

A(n) _________ describes the joining of two independent companies to form a combined entity.

• A) Acquisition
• B) Merger
• C) Joint venture
• D) Equity alliance

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Definitions:

Certified Financial Advisor

A professional who has obtained certification and is qualified to provide financial planning and advice to clients.

Fiduciary Duty

A legal obligation of one party to act solely in the interest of another party. For example, corporate directors have a fiduciary duty to act in the best interests of their shareholders.

Malpractice

The failure of a professional to provide services with the skill and care that is ordinarily provided by competent professionals, leading to harm or loss.

Third Party

In contract law, a person who may, in some way, be affected by a contract but who is not one of the contracting parties. Also called outside party.