Which term describes the legal combination of two organizations that may involve joining assets or acquisition?

Which term describes the legal combination of two organizations that may involve joining assets or acquisition?

• A. Merger
• B. Merger & Acquisition (M&A)
• C. Merit Increase
• D. Mediation

Answer: (B)

M&A is the umbrella term for the activities involved when two organizations combine, covering both mergers and acquisitions. A merger is when two firms join to form one new entity, pooling assets, liabilities, and operations. An acquisition is when one company purchases another, gaining control, which may involve absorbing assets and integrating the business. Since the description mentions a legal combination that may involve joining assets or an acquisition, M&A best fits because it encompasses both scenarios. The other options aren’t related to combining companies: a merit increase is a salary raise, and mediation is a dispute-resolution process.

M&A is the umbrella term for the activities involved when two organizations combine, covering both mergers and acquisitions. A merger is when two firms join to form one new entity, pooling assets, liabilities, and operations. An acquisition is when one company purchases another, gaining control, which may involve absorbing assets and integrating the business. Since the description mentions a legal combination that may involve joining assets or an acquisition, M&A best fits because it encompasses both scenarios. The other options aren’t related to combining companies: a merit increase is a salary raise, and mediation is a dispute-resolution process.