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Rohan and Aman are partners in a car parts manufacturing company. They are planning to expand their business and in order to grow Rohan suggested to merge with another car accessories company, however Aman wanted to acquire another car accessories company. Both mergers and acquisitions are enterprise growth strategies, but how they come into existence makes them different from each other. Which of the below statements justifies the given statement?
- a)Merger is always friendly, whereas acquisition is always hostile.
- b)Merger may be friendly, whereas acquisition is always hostile.
- c)Merger is always dependent on synergy, whereas acquisition is never based on synergy.
- d)Merger is consensual, whereas acquisition is forced.
Correct answer is option 'D'. Can you explain this answer?
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Rohan and Aman are partners in a car parts manufacturing company. They...
- The terms mergers and acquisitions are often used interchangeably, but they differ in meaning.
- In an acquisition, one company purchases another outright.
- A merger is the combination of two firms, which subsequently form a new legal entity under the banner of one corporate name.
- A company can be objectively valued by studying comparable companies in an industry and using metrics.
Most Upvoted Answer
Rohan and Aman are partners in a car parts manufacturing company. They...
Explanation:
Mergers and acquisitions (M&A) are both strategies used by companies to achieve growth and expand their business. However, they differ in how they come into existence. The given statement justifies the difference between mergers and acquisitions by stating that mergers are consensual, whereas acquisitions are forced.
Merger:
A merger is a process in which two or more companies combine to form a new company. It is a consensual agreement between the companies involved, where they agree to merge their operations, resources, and assets to create a stronger and more competitive entity. Both companies contribute to the formation of the new company, and the ownership and control are shared between the merging entities. In a merger, the aim is to achieve synergy, which means that the combined entity is expected to be more valuable than the sum of its parts.
Acquisition:
An acquisition, on the other hand, is a process in which one company acquires another company. It is a transaction in which one company buys a majority stake in another company, thereby gaining control over its operations, resources, and assets. Acquisitions can be friendly or hostile. A friendly acquisition is when the target company willingly agrees to be acquired, whereas a hostile acquisition is when the acquiring company takes control of the target company against its wishes.
Difference:
The key difference between mergers and acquisitions lies in the nature of the agreement and the level of consent involved. Mergers are consensual agreements where both companies willingly agree to combine their operations. On the other hand, acquisitions can be consensual or hostile, with the acquiring company forcing the acquisition upon the target company in a hostile takeover.
Therefore, option D is the correct answer as it accurately justifies the given statement. Mergers are consensual, whereas acquisitions can be forced. The other options do not accurately describe the difference between mergers and acquisitions.
Mergers and acquisitions (M&A) are both strategies used by companies to achieve growth and expand their business. However, they differ in how they come into existence. The given statement justifies the difference between mergers and acquisitions by stating that mergers are consensual, whereas acquisitions are forced.
Merger:
A merger is a process in which two or more companies combine to form a new company. It is a consensual agreement between the companies involved, where they agree to merge their operations, resources, and assets to create a stronger and more competitive entity. Both companies contribute to the formation of the new company, and the ownership and control are shared between the merging entities. In a merger, the aim is to achieve synergy, which means that the combined entity is expected to be more valuable than the sum of its parts.
Acquisition:
An acquisition, on the other hand, is a process in which one company acquires another company. It is a transaction in which one company buys a majority stake in another company, thereby gaining control over its operations, resources, and assets. Acquisitions can be friendly or hostile. A friendly acquisition is when the target company willingly agrees to be acquired, whereas a hostile acquisition is when the acquiring company takes control of the target company against its wishes.
Difference:
The key difference between mergers and acquisitions lies in the nature of the agreement and the level of consent involved. Mergers are consensual agreements where both companies willingly agree to combine their operations. On the other hand, acquisitions can be consensual or hostile, with the acquiring company forcing the acquisition upon the target company in a hostile takeover.
Therefore, option D is the correct answer as it accurately justifies the given statement. Mergers are consensual, whereas acquisitions can be forced. The other options do not accurately describe the difference between mergers and acquisitions.
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Rohan and Aman are partners in a car parts manufacturing company. They are planning to expand their business and in order to grow Rohan suggested to merge with another car accessories company, however Aman wanted to acquire another car accessories company. Both mergers and acquisitions are enterprise growth strategies, but how they come into existence makes them different from each other. Which of the below statements justifies the given statement?a)Merger is always friendly, whereas acquisition is always hostile.b)Merger may be friendly, whereas acquisition is always hostile.c)Merger is always dependent on synergy, whereas acquisition is never based on synergy.d)Merger is consensual, whereas acquisition is forced. Correct answer is option 'D'. Can you explain this answer?
Question Description
Rohan and Aman are partners in a car parts manufacturing company. They are planning to expand their business and in order to grow Rohan suggested to merge with another car accessories company, however Aman wanted to acquire another car accessories company. Both mergers and acquisitions are enterprise growth strategies, but how they come into existence makes them different from each other. Which of the below statements justifies the given statement?a)Merger is always friendly, whereas acquisition is always hostile.b)Merger may be friendly, whereas acquisition is always hostile.c)Merger is always dependent on synergy, whereas acquisition is never based on synergy.d)Merger is consensual, whereas acquisition is forced. Correct answer is option 'D'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Rohan and Aman are partners in a car parts manufacturing company. They are planning to expand their business and in order to grow Rohan suggested to merge with another car accessories company, however Aman wanted to acquire another car accessories company. Both mergers and acquisitions are enterprise growth strategies, but how they come into existence makes them different from each other. Which of the below statements justifies the given statement?a)Merger is always friendly, whereas acquisition is always hostile.b)Merger may be friendly, whereas acquisition is always hostile.c)Merger is always dependent on synergy, whereas acquisition is never based on synergy.d)Merger is consensual, whereas acquisition is forced. Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rohan and Aman are partners in a car parts manufacturing company. They are planning to expand their business and in order to grow Rohan suggested to merge with another car accessories company, however Aman wanted to acquire another car accessories company. Both mergers and acquisitions are enterprise growth strategies, but how they come into existence makes them different from each other. Which of the below statements justifies the given statement?a)Merger is always friendly, whereas acquisition is always hostile.b)Merger may be friendly, whereas acquisition is always hostile.c)Merger is always dependent on synergy, whereas acquisition is never based on synergy.d)Merger is consensual, whereas acquisition is forced. Correct answer is option 'D'. Can you explain this answer?.
Rohan and Aman are partners in a car parts manufacturing company. They are planning to expand their business and in order to grow Rohan suggested to merge with another car accessories company, however Aman wanted to acquire another car accessories company. Both mergers and acquisitions are enterprise growth strategies, but how they come into existence makes them different from each other. Which of the below statements justifies the given statement?a)Merger is always friendly, whereas acquisition is always hostile.b)Merger may be friendly, whereas acquisition is always hostile.c)Merger is always dependent on synergy, whereas acquisition is never based on synergy.d)Merger is consensual, whereas acquisition is forced. Correct answer is option 'D'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Rohan and Aman are partners in a car parts manufacturing company. They are planning to expand their business and in order to grow Rohan suggested to merge with another car accessories company, however Aman wanted to acquire another car accessories company. Both mergers and acquisitions are enterprise growth strategies, but how they come into existence makes them different from each other. Which of the below statements justifies the given statement?a)Merger is always friendly, whereas acquisition is always hostile.b)Merger may be friendly, whereas acquisition is always hostile.c)Merger is always dependent on synergy, whereas acquisition is never based on synergy.d)Merger is consensual, whereas acquisition is forced. Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rohan and Aman are partners in a car parts manufacturing company. They are planning to expand their business and in order to grow Rohan suggested to merge with another car accessories company, however Aman wanted to acquire another car accessories company. Both mergers and acquisitions are enterprise growth strategies, but how they come into existence makes them different from each other. Which of the below statements justifies the given statement?a)Merger is always friendly, whereas acquisition is always hostile.b)Merger may be friendly, whereas acquisition is always hostile.c)Merger is always dependent on synergy, whereas acquisition is never based on synergy.d)Merger is consensual, whereas acquisition is forced. Correct answer is option 'D'. Can you explain this answer?.
Solutions for Rohan and Aman are partners in a car parts manufacturing company. They are planning to expand their business and in order to grow Rohan suggested to merge with another car accessories company, however Aman wanted to acquire another car accessories company. Both mergers and acquisitions are enterprise growth strategies, but how they come into existence makes them different from each other. Which of the below statements justifies the given statement?a)Merger is always friendly, whereas acquisition is always hostile.b)Merger may be friendly, whereas acquisition is always hostile.c)Merger is always dependent on synergy, whereas acquisition is never based on synergy.d)Merger is consensual, whereas acquisition is forced. Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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ample number of questions to practice Rohan and Aman are partners in a car parts manufacturing company. They are planning to expand their business and in order to grow Rohan suggested to merge with another car accessories company, however Aman wanted to acquire another car accessories company. Both mergers and acquisitions are enterprise growth strategies, but how they come into existence makes them different from each other. Which of the below statements justifies the given statement?a)Merger is always friendly, whereas acquisition is always hostile.b)Merger may be friendly, whereas acquisition is always hostile.c)Merger is always dependent on synergy, whereas acquisition is never based on synergy.d)Merger is consensual, whereas acquisition is forced. Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice Commerce tests.
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