The Difference Between a Merger and an Acquisition Is That

question 53

Multiple Choice

The difference between a merger and an acquisition is that

• A)a merger involves one company purchasing the assets of another company with cash, whereas an acquisition involves a company acquiring another company by buying all of the shares of its common stock.
• B)a merger is the combining of two or more companies into a single corporate entity, whereas an acquisition involves one company (the acquirer)purchasing and absorbing the operations of another company (the acquired).
• C)in a merger, the companies retain their original names, whereas in an acquisition the name of the company being acquired is changed to be the name of the acquiring company.
• D)a merger is a combination of three or more companies, whereas an acquisition is a pooling of interests of just two companies.
• E)a merger involves two or more companies deciding to adopt the same strategy, whereas an acquisition involves one company taking over the strategy-making function of another company.

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Definitions:

Esteem Needs

According to Abraham Maslow's hierarchy of needs, these are the fourth level of human needs, involving respect, self-esteem, status, recognition, and strength.

Affiliation Needs

A person's need to feel a sense of involvement and belonging within a social group.

Security Needs

A level in Maslow's hierarchy of needs, focusing on the desire for safety, stability, and protection from physical and emotional harm.

Affiliation Needs

The human desire to form and maintain interpersonal relationships, connections, and a sense of belonging.