Loose Leaf for Foundations of Financial Management Format: Loose-leaf
17th Edition
ISBN: 9781260464924
Author: BLOCK
Publisher: Mcgraw Hill Publishers
expand_more
expand_more
format_list_bulleted
Question
Chapter 20, Problem 2DQ
Summary Introduction
To explain: The difference between merger and consolidation.
Introduction:
Merger:
It is defined as a process of the statutory and contractual combination of two or more organizations when they agree to merge into one entity. In this process, the company taking over remains active while the other one becomes dormant and ceases all its operations.
Consolidation:
It is a process of the contractual combination of two or more organizations in which all the joining companies cease to exist and an entirely new entity is created, which is called the successor entity.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Can a JV be converted to merger and consolidation? how would you account for that?
What is meant by contemplating a merger?
Is there a need to regulate mergers? Explain
Chapter 20 Solutions
Loose Leaf for Foundations of Financial Management Format: Loose-leaf
Knowledge Booster
Similar questions
- What is the difference between statutory merger, staturory consolidation and statutory acquisition?arrow_forwardExamine what the empirical evidence say about who actually gains in a merger combinations.arrow_forwardQ9. Which of the following are generally not considered motives for mergers? Desire to achieve antitrust regulatory approval Desire to achieve economies of scale Desire to achieve economies of scope Strategic realignment Desire to purchase undervalued assetarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Intermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage Learning
Intermediate Financial Management (MindTap Course...
Finance
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Cengage Learning