This usually occurs when the acquirer is much larger than the target and acquires the target`s assets and liabilities.a.Horizontal Mergerb.Subsidiary Mergerc.Statutory Mergerd.Consolidation
Question
This usually occurs when the acquirer is much larger than the target and acquires the target`s assets and liabilities.a.Horizontal Mergerb.Subsidiary Mergerc.Statutory Mergerd.Consolidation
Solution
The answer is c. Statutory Merger. In a statutory merger, the acquiring company absorbs the target company, including its assets and liabilities. The target company ceases to exist as a separate entity. This type of merger is common when the acquiring company is significantly larger than the target company.
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