Differentiate between consolidation and merger. – InterviewSolution

1.

Differentiate between consolidation and merger.

Answer»

Merger	consolidation
(i) In a merger one company takes over another,including all assets and liabilities. the company that takes over remains active while the one that is acquired essentially ceases to exist.	(i) In a consolidation two or more companies merge to from one new larger company all of each company assets and liabilities then become the Property of the new company.
(ii) Firms involved are differently sized.	(ii) firms involved are nearly equally sized.

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