A(n)________ occurs when two companies of about the same size mutually agree to create a new combined company.
A) merger
B) acquisition
C) takeover
D) synergy
E) cooperative

Question

Quizplus · Accepted Answer

A merger occurs when two companies of about the same size mutually agree to create a new combined company. This is different from an acquisition, where one company buys another company. A takeover involves one company taking control of another company, usually against its will. Synergy refers to the creation of extra value that comes from combining two companies, and a cooperative is a business owned and operated by a group of individuals for their mutual benefit.

A(n)________ Occurs When Two Companies of About the Same Size