Match List-I with List-II. List

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Target Exam

CUET

Subject

Entrepreneurship

Chapter

Enterprise growth Strategies

Question:

Match List-I with List-II.

List I Concepts	List II Terms
(A) Company A + Company B = Company C	(I) Back flip acquisition
(B) Cost saving as a result of a merger	(II) Amalgamation
(C) Private company takes over public company	(III) Reverse Acquisition
(D) Take over where buying company becomes subsidiary of purchased company	(IV) Operational synergy

Choose the correct answer from the options given below:

Options:

(A)-(II), (B)-(I), (C)-(IV), (D)-(III)

(A)-(II), (B)-(IV), (C)-(III), (D)-(I)

(A)-(IV), (B)-(II), (C)-(I), (D)-(III)

(A)-(I), (B)-(IV), (C)-(II), (D)-(III)

Correct Answer:

(A)-(II), (B)-(IV), (C)-(III), (D)-(I)

Explanation:

Back flip acquisition: A very rare case of acquisition in which the purchasing company becomes a subsidiary of the purchased company.

Reverse acquisition : A private company takes over a public company.

Amalgamation: Here two entities combine together and form a new entity, extinguishing both the existing entities.

Operational Synergy: Cost saving as a result of a merger