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. Cons olidation: 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.

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Answer 1

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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.

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Answer 2

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.

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Answer 3

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.

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Answer 4

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.

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Answer 5

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.

Answer 6

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.

Answer 7

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.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 20 - Prob. 1DQ Ch. 20 - Prob. 2DQ Ch. 20 - Prob. 3DQ Ch. 20 - Prob. 4DQ Ch. 20 - What is synergy? What might cause this result? Is...Ch. 20 - Prob. 6DQ Ch. 20 - Prob. 7DQ Ch. 20 - Prob. 8DQ Ch. 20 - Prob. 9DQ Ch. 20 - Prob. 10DQ

Solution Summary: The author explains the difference between merger and consolidation. Merger is the statutory and contractual combination of two or more organizations when they agree to merge into one entity.

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