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GCE Commerce 1989 Question 73

Question 73

Business Combinations

The process whereby a firm buys over the assets and liabilities of another firm is known as

  1. A.amalgamation
  2. B.cartel
  3. C.factoring
  4. D.holding
  5. E.combine
Show the answer and explanation

Answer: A (amalgamation)

Explanation

Taking over another firm's assets and liabilities so that the two become one business is amalgamation (merger/absorption); a holding company only buys controlling shares.