The Difference Between a Merger and an Acquisition Is

question 29

Multiple Choice

The difference between a merger and an acquisition is

• A)a merger involves one company purchasing the assets of another company with cash,whereas an acquisition involves one company becoming the owner of 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 (with the newly created company often taking on a new name),whereas an acquisition is a combination in which one company,the acquirer,purchases and absorbs the operations of another,the acquired.
• C)nonexistent;in both instances,two companies become one.
• D)the brands of both companies are retained in a merger,whereas with an acquisition,there is only one surviving brand name.
• E)a merger involves two or more companies deciding to adopt the same strategy,whereas an acquisition involves one company becoming the owner of another company but with each company still pursuing its own separate strategy.

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Definitions:

Ethanol

A two-carbon alcohol (C2H5OH) commonly used as a solvent, fuel, and in alcoholic beverages.

Methylhexene

An alkene with a methyl group and a hexene (six carbon linear chain with a double bond) component in its structure.

Elimination

A type of chemical reaction where elements are removed from a compound, resulting in the formation of a double or triple bond.

Substitution

A chemical reaction where one atom or group of atoms in a molecule is replaced with a different atom or group of atoms.