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The target becomes a subsidiary of the acquirer but continues to maintain its business.a.Statutory Mergerb.Subsidiary Mergerc.Consolidationd.Vertical Merger

Question

The target becomes a subsidiary of the acquirer but continues to maintain its business.a.Statutory Mergerb.Subsidiary Mergerc.Consolidationd.Vertical Merger

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Solution

The correct answer is b. Subsidiary Merger. In a subsidiary merger, the target company becomes a subsidiary of the acquiring company but continues to maintain its business. This means that the target company still exists as a legal entity, but is controlled by the acquiring company.

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