A(n) ________ occurs when two companies of about the same size mutually agree to create a new combined company
A) merger
B) acquisition
C) takeover
D) synergy
E) cooperative
A
Explanation: A) Mergers happen when two companies come together to form one company. This differs from an acquisition, which happens when one company purchases another company. The purchased company ceases to exist and operates under the buying company's name. Sometimes mergers and acquisitions are not friendly and are referred to as hostile takeovers. Synergy can be a goal of mergers and acquisitions.
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