General Studies · Corporate Restructuring
Which of the following statements best describes the structural difference between a merger and an acquisition?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A merger is a combination where companies consolidate into one legal entity, whereas an acquisition involves one company buying another.✓
- 2In a merger, two companies fuse together without ever creating a newly combined legal structure.
- 3An acquisition is strictly defined as a friendly or hostile takeover involving two equal entities.
- 4There is no real difference, as both terms are completely synonymous in corporate strategy.
Correct answer
A merger is a combination where companies consolidate into one legal entity, whereas an acquisition involves one company buying another.
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