Inshorts Pvt. Ltd. is hiring candidates for its new growth project. The HR team is conducting a campus placement drives in colleges. Since the position is required for growth project, HR asked one of the candidates whether the value of a merged firm will be greater or equal to the two independent firms. The candidate responded confidently that the value of a merged firm will be greater than the sum of two independent merging firms. Keeping in mind the above scenario, state whether the candidate has given a true statement or not.a)Trueb)FalseCorrect answer is option 'A'. Can you explain this answer?

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Inshorts Pvt. Ltd. is hiring candidates for its new growth project. The HR team is conducting a campus placement drives in colleges. Since the position is required for growth project, HR asked one of the candidates whether the value of a merged firm will be greater or equal to the two independent firms. The candidate responded confidently that the value of a merged firm will be greater than the sum of two independent merging firms. Keeping in mind the above scenario, state whether the candidate has given a true statement or not.

a)
True
b)
False

Correct answer is option 'A'. Can you explain this answer?

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Inshorts Pvt. Ltd. is hiring candidates for its new growth project. Th...

A merger typically occurs when one company purchases another company by buying a certain amount of its stock in exchange for its own stock. Typically, the share price of the company being bought will increase as goodwill is taken into consideration in the purchase price.
Mergers combine two separate businesses into a single new legal entity. Unlike mergers, acquisitions do not result in the formation of a new company. Instead, the purchased company gets fully absorbed by the acquiring company. Sometimes this means the acquired company gets liquidated.

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Inshorts Pvt. Ltd. is hiring candidates for its new growth project. Th...

A merger typically occurs when one company purchases another company by buying a certain amount of its stock in exchange for its own stock. Typically, the share price of the company being bought will increase as goodwill is taken into consideration in the purchase price.
Mergers combine two separate businesses into a single new legal entity. Unlike mergers, acquisitions do not result in the formation of a new company. Instead, the purchased company gets fully absorbed by the acquiring company. Sometimes this means the acquired company gets liquidated.

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