Asked by Natalia Hernandez on Jun 04, 2024
Verified
Which of the following is the appropriate term for the action contemplated by Tyler and Byron to combine the businesses under the name "Skateboard for Health"?
A) Merger
B) Consolidation
C) Asset purchase
D) Restructuring
E) Reforming
Consolidation
Consolidation refers to the process of combining several smaller entities, debts, or accounts into a single, more comprehensive unit for management efficiency.
Restructuring
The act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable or better organized.
Asset Purchase
An asset purchase involves buying the assets of a company, such as equipment, inventory, and property, rather than buying the company's stock.
- Comprehend the distinctions among mergers, consolidations, and acquisitions.
Verified Answer
Learning Objectives
- Comprehend the distinctions among mergers, consolidations, and acquisitions.
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