Which of the following statements are true about mergers? Each correct answer represents a complete solution. Choose all that apply.

Question

Options

• AMergers occur when the merging companies have their different consent.
• BMergers present the involved parties with special challenges that must be navigated unto
• CMergers refer to the aspect of corporate strategy, corporate finance and management dealing
• DMergers can be vertical, horizontal, congeneric or conglomerate, depending or the nature of

• A
  92% (24)
• B
  8% (2)

Explanation

Mergers refer to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing, and combining of different companies and similar entities that can help an enterprise grow rapidly in its domain or location of origin, or a new field or new location, without creating a subsidiary, other child entity or using a joint venture. Mergers occur when the merging companies have their mutual consent as different from acquisitions, which can take the form of a hostile takeover. Mergers can be vertical, horizontal, congeneric or conglomerate, depending or the nature of the merging companies. Answer option 8 is incorrect. A partnership is an arrangement where parties agree to cooperate to advance their mutual interests. Partnerships present the involved parties with special challenges that must be navigated unto agreement.

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