A Merger in Which an Entirely New Firm Is Created

question 11

Multiple Choice

A merger in which an entirely new firm is created and both the acquired and acquiring firms cease to exist is called a:

• A)divestiture.
• B)consolidation.
• C)tender offer.
• D)spinoff.
• E)conglomeration.

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Definitions:

DVD Player

An electronic device that plays DVDs, typically allowing for the viewing of movies and other video content on a TV or monitor.

Cleverly Altered

Describes something modified in a skillful or ingenious manner.

Check Deduction

A payroll or accounting action where a specific amount of money is subtracted directly from an employee's paycheck.

Bank Liability

The legal responsibilities and obligations a bank has towards its customers, such as ensuring the security of deposits and providing accurate account information.