Choose the best definition of a merger.
A) A merger occurs when one company sells shares of the company on a public exchange.
B) A merger is separating one company into two or more separate legal entities.
C) A merger is a combination of two separate companies into a new legal entity.
D) A merger happens when one company purchases another company to acquire all or most of the shares, and therefore control over that company.

Question

Quizplus · Accepted Answer

A merger specifically refers to the process where two separate companies combine to form a new legal entity. This is distinct from acquisitions, where one company takes over another, or public offerings and splits.

Choose the Best Definition of a Merger