A merger in which an entirely new firm is created, with both the acquired and acquiring firms ceasing to exist, is called a _________________.
A) Divestiture.
B) Consolidation.
C) Tender offer.
D) Spinoff.
E) Merger.

Question

Quizplus · Accepted Answer

A consolidation is a type of merger where an entirely new entity is formed, and both the acquiring and acquired companies cease to exist as separate entities.

A Merger in Which an Entirely New Firm Is Created