Methods
It turns out that there are several ways companies can create relationships, new companies, or even buy other companies. So let me first explain what these relationships are. Business combinations are basically grouped by method of combination into three types: mergers, consolidations, and acquisitions.
A merger is the combining of two or more companies when there is some exchange of stock, cash, or other payments, where the acquiring company survives and the acquired company ceases to exist as a legal entity and surrenders its stock. For example:
Company A+ Company B = Company A
A consolidation results when a new corporation is formed when two or more corporations exchange voting stock. The acquired corporations cease to exist as separate ...
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