Which of the following occurs when two companies join forces and become one entity?
A) an acquisition
B) a merger
C) a takeover
D) a joint venture
E) a strategic alliance

Question

Quizplus · Accepted Answer

When two companies join forces, become one entity, and operate under a single management, it is called a merger. An acquisition is when one company takes over another company and becomes the new owner. A takeover is a form of acquisition in which one company takes control of another company without the latter's agreement. A joint venture is a partnership between two or more companies to carry out a specific project, whereas a strategic alliance is a collaboration between companies to share resources and knowledge to achieve a common goal.

Which of the Following Occurs When Two Companies Join Forces