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Questions and Answers
Which type of business transaction involves the transfer of ownership of companies or their operating units?
Which type of business transaction involves the transfer of ownership of companies or their operating units?
- Consolidation
- Mergers and acquisitions (correct)
- Acquisitions
- Mergers
What is the difference between a merger and an acquisition?
What is the difference between a merger and an acquisition?
- A merger involves the consolidation of assets and liabilities, while an acquisition involves the transfer of ownership
- There is no difference between a merger and an acquisition
- A merger involves the consolidation of assets, while an acquisition involves the consolidation of liabilities
- A merger involves the transfer of ownership, while an acquisition involves the consolidation of assets and liabilities (correct)
When is a deal referred to as a 'merger of equals'?
When is a deal referred to as a 'merger of equals'?
- When both companies have equal market share
- When both CEOs agree on the terms of the deal
- When both companies have equal revenue
- When both CEOs agree that joining together is in the best interest of both companies (correct)
What happens from a legal and financial perspective in both mergers and acquisitions?
What happens from a legal and financial perspective in both mergers and acquisitions?
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What must mergers and acquisitions comply with in most countries?
What must mergers and acquisitions comply with in most countries?
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