chapter 04 assignment: choosing a form of business ownership\n22 of 25\ntotal points: 21/25\nwhich of the…

chapter 04 assignment: choosing a form of business ownership\n22 of 25\ntotal points: 21/25\nwhich of the following is correct regarding mergers and acquisitions?\nthe term acquisition is generally used to reference a small corporations purchase of a large corporation by means of a leveraged (financed) buyout.\nan acquisition is essentially the same thing as a merger.\nthe combining of two corporations to form two new businesses is called a merger.\nmost mergers and acquisitions are hostile.

chapter 04 assignment: choosing a form of business ownership\n22 of 25\ntotal points: 21/25\nwhich of the following is correct regarding mergers and acquisitions?\nthe term acquisition is generally used to reference a small corporations purchase of a large corporation by means of a leveraged (financed) buyout.\nan acquisition is essentially the same thing as a merger.\nthe combining of two corporations to form two new businesses is called a merger.\nmost mergers and acquisitions are hostile.

Answer

Brief Explanations:

  1. An acquisition is when one company buys another, not necessarily a small - company buying a large one via leveraged buyout.
  2. A merger is when two companies combine to form one new entity, while an acquisition is one company taking over another, so they are not the same.
  3. A merger combines two corporations to form one new business, not two new businesses.
  4. Most mergers and acquisitions are friendly, not hostile.

Answer:

None of the above options are correct.