A consolidation is the combining of ﬁrms such that:
A) The acquired ﬁrm is completely absorbed by the acquirer such that the acquired ﬁrm ceases to exist.
B) The bidder and the target ﬁrms are unrelated.
C) A new ﬁrm is created and both the acquired and the acquiring ﬁrms cease to exist.
D) Vertical integration occurs.
E) Horizontal integration occurs.

Question

Quizplus · Accepted Answer

In a consolidation, both the acquiring and acquired firms cease to exist, and a new entity is formed.

A Consolidation Is the Combining of ﬁRms Such That