The Difference Between a Merger and an Acquisition Is That

question 42

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 a pooling of equals 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.