A business combination of two or more companies in which the resulting firm maintains the identity of the acquiring company is defined as a
A) consolidation.
B) holding company.
C) conglomerate.
D) merger.

Question

Quizplus · Accepted Answer

A merger is a common form of business combination in which two or more companies come together to form a single entity, with the resulting firm maintaining the identity of the acquiring company. This can be contrasted with a consolidation, in which the identities of both companies are dissolved and a new entity is created, or with a holding company, in which a single company controls a number of other companies but each maintains its own identity. A conglomerate is a different type of business structure altogether, in which a company operates in multiple, unrelated industries.

A Business Combination of Two or More Companies in Which