A(n) ____ is the transfer of the control of operations and management from one firm to another with the former becoming a unit of the latter, while a(n) ____ is the combination of operations and management of two firms to establish a new legal entity.
A) Equity-based alliance, contractual alliance
B) Merger, acquisition
C) Acquisition, merger
D) Contractual alliance, equity-based alliance

Question

Quizplus · Accepted Answer

The first part of the question is describing an acquisition, where one firm takes control of another firm and makes it a unit of its own. The second part of the question is describing a merger, where two firms combine their operations and management to create a new legal entity. The other answer choices are not applicable or do not accurately describe the situations presented.

A(n) ____ Is the Transfer of the Control of Operations