When two organizations of about equal size unite to form one enterprise,which of these occurs?
A)Leveraged buyout
B)Hostile takeover
C)Merger
D)Divestiture
E)Acquisition

Question

Quizplus · Accepted Answer

A merger occurs when two organizations of about equal size unite to form one enterprise. This is different from an acquisition, where one company acquires another company, often resulting in a larger company taking over a smaller company. A leveraged buyout refers to the acquisition of a company using a significant amount of borrowed money, often with the acquired company's assets serving as collateral. A hostile takeover is an acquisition where the acquiring company takes over the target company against its will. Divestiture refers to the process of selling off a part of a company's assets or a subsidiary.

When Two Organizations of About Equal Size Unite to Form