A Merger in Which Both the Acquirer and Target Disappear

question 85

Multiple Choice

A merger in which both the acquirer and target disappear as separate corporations,combining to form an entirely new corporation with new common stock.

• A) subsidiary merger
• B) statutory merger
• C) subsidiary merger .
• D) reverse triangle merger
• E) consolidation

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Definitions:

LAC Curves

The Long-Run Average Cost curves, which show the minimum average cost of production at different levels of output.

LMC Curves

Abbreviation for Long-Run Marginal Cost curves, which represent the cost to produce one additional unit of goods when all inputs can be varied.

Returns to Scale

The change in output resulting from proportional change in all inputs (factors of production); can be increasing, constant, or decreasing.

Returns to Scale

The change in output resulting from a proportional change in all inputs (factors of production); it identifies whether increasing inputs leads to proportionate, more than proportionate, or less than proportionate changes in output.