Asked by Anika Singh on Jul 19, 2024
Verified
The terms "acquisition" and "takeover" are often used to refer to a merger because the stock of the firm that goes out of existence is usually acquired by the continuing firm.
Acquisition
The process of obtaining control of another corporation, either through purchase or merger.
Takeover
The transfer of control over a company from one group to another. The term generally has a hostile implication.
Merger
The combining of two or more companies into one, with the goal of achieving synergies such as increased efficiency or market share.
- Assess the involvement of shareholders and management in the course of mergers and acquisitions.
Verified Answer
KE
kiara evansJul 24, 2024
Final Answer :
True
Explanation :
This statement is true. In a merger, one company usually acquires or takes over the other company, and the stock of the acquired company is typically absorbed by the acquiring company.
Learning Objectives
- Assess the involvement of shareholders and management in the course of mergers and acquisitions.
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