Asked by Camryn Grant on Feb 18, 2024
Verified
Company X and Company Y unite into one new company-Company Z.Which term describes this situation?
A) litigation
B) merger
C) divestiture
D) acquisition
Divestiture
Corporate action of selling off subsidiary business units or interests.
- Understanding the concept of corporate restructuring
- Identifying different types of corporate restructuring
- Recognizing the term "merger" as the appropriate description for the situation described
Verified Answer
ME
Maggie EiggamFeb 18, 2024
Final Answer :
B
Explanation :
Company X and Company Y are merging to form a new company, which is described as a merger.
Learning Objectives
- Understanding the concept of corporate restructuring
- Identifying different types of corporate restructuring
- Recognizing the term "merger" as the appropriate description for the situation described