Question

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.

Answer 1

Answer:

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.