An amalgamation can best be deﬁned as:
A) A combination of ﬁrms that have been joined by merger, consolidation or acquisition.
B) The complete absorption of one company by another, where the acquiring ﬁrm retains its identity and the acquired ﬁrm ceases to exist as a separate entity.
C) A merger in which a new ﬁrm is created and both the acquired and acquiring ﬁrm cease to exist.
D) A public offer by one ﬁrm to directly buy the shares from another.
E) A corporate takeover bid communicated to the shareholders through direct mail.

Question

Quizplus · Accepted Answer

An amalgamation is a combination of firms that have been joined by merger, consolidation, or acquisition. Option A is the closest to this definition. Option B is a complete absorption of one company by another, and option C talks about creating a new firm. Option D and E are more specific to the process of acquiring shares, which may or may not lead to an amalgamation.

An Amalgamation Can Best Be Deﬁned As