The combination of operations and management of two firms to establish a new legal entity is called a(n) _____.
A) joint venture
B) merger
C) contractual alliance
D) acquisition

Question

The combination of operations and management of two firms to establish a new legal entity is called a(n) _____.
A) joint venture 
B) merger 
C) contractual alliance 
D) acquisition

Quizplus · Accepted Answer

A merger involves the combination of two firms into a new legal entity, whereas a joint venture involves the creation of a separate entity to carry out a specific business project, a contractual alliance involves a contractual relationship between two firms, and an acquisition involves one firm purchasing another firm.

The Combination of Operations and Management of Two Firms to Establish