The difference between a merger and an acquisition relates to:

A. strategy and competitive advantage.

B. the presence of available resources and competitive capabilities.

C. whether the end result is related to horizontal or vertical scope.

D. creating a more cost-efficient operation out of the combined companies.

E. the details of ownership, management control, and the financial arrangements.

Question

Business

Porter Cummings

9 February, 12:41

The difference between a merger and an acquisition relates to:

A. strategy and competitive advantage.

B. the presence of available resources and competitive capabilities.

C. whether the end result is related to horizontal or vertical scope.

D. creating a more cost-efficient operation out of the combined companies.

E. the details of ownership, management control, and the financial arrangements.

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Answers (1)

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Omar Stanley · Answer 1

E. the details of ownership, management control, and the financial arrangements.

Explanation:

Merger refers to a form of partnership or co-ownership where two or more companies come together, bringing assets and manpower to form a new company with a new name. Acquisition refers to a buy-out of a smaller company by a larger one. Usually The acquiring company has a greater say over the management process in the smaller company.