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:

Money Damages

A monetary reward granted by a judicial body to an individual who has endured damage or injury as a result of someone else's illegal behavior or carelessness.

Remedy at Law

Legal means through which a party can enforce a right or redress a wrong, typically involving monetary compensation or specific performance.

Equity

A branch of law that developed alongside common law in order to remedy situations where strict application of traditional legal principles would be unfair or unjust.

Court of Equity

A judicial body that resolves disputes based on fairness and equitable principles, rather than strictly adhering to the letter of the law.