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Solution for Finance: Applications and Theory 3rd Edition Chapter 20, Problem 1

by Marcia Cornett and Troy Adair and John Nofsinger
907 Solutions 20 Chapters 118498 Studied ISBN: 9780077861681 Finance 5 (1)

Chapter 20, Problem 1 : 1 Describe the difference between a merger and...

1 Describe the difference between a merger and an acquisition

 

Step-By-Step Solution

1. A merger is a transaction in which two firms combine to form a single firm. An acquisition is the purchase of one firm by another. Despite these two distinct definitions, the two terms, mergers and acquisitions, are often used interchangeably.

 

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