What is the difference between merger and consolidation?
Credit: Robert Daly OJO Images Getty Images
Q:

What is the difference between merger and consolidation?

A:

Quick Answer

In a merger, one corporation, known as the survivor, takes over another corporation, known as the merged. A consolidation is the joining of two corporations to form a new, third corporation.

Know More

Full Answer

When a merger is carried out against the wishes of the merged company's board of directors, it is referred to as a hostile takeover. The stockholders of the merged company are either bought out or offered stock in the survivor company. A consolidation may involve two or more corporations. Once a consolidation is complete, the original corporations are defunct and no longer exist. The new corporation chooses its own board of directors and corporate officers.

Learn More

Related Questions

  • Q:

    How do you start a corporation?

    A:

    Starting a corporation involves creating a business idea and fulfilling all of the requirements as set by corporation law. In addition, you need to acquire all relevant work permits, licenses and an employer identification number.

    Full Answer >
    Filed Under:
  • Q:

    What is the Sandia Corporation?

    A:

    The Sandia Corporation manages Sandia National Laboratories for the U.S. Department of Energy’s National Nuclear Security Administration. The corporation has roots in World War II and the Manhattan Project. It is currently a subsidiary of Lockheed Martin.

    Full Answer >
    Filed Under:
  • Q:

    What is a government corporation?

    A:

    A government corporation is a state-owned entity that is created in order to pursue commercial or industrial activities on behalf of a national government. These can be completely owned or partially owned by a government.

    Full Answer >
    Filed Under:
  • Q:

    What is an S corporation?

    A:

    An S corporation is a formal business structure that company owners can set up under Subchapter S of the Internal Revenue Code. This type of business allows owners to take advantage of some benefits of a limited liability company along with some tax advantages of a corporation.

    Full Answer >
    Filed Under:

Explore