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Paralegal Exam Prep

Category - Miscellaneous

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If BigCo A and BigCoB join together to become BigCoC, what has occurred?

A liquidation.
A consolidation.
A migration.
An integration.
A merger.

Explanation

Answer: B. If BigCo A and BigCoB join together to become BigCoC, a consolidation has occurred. A consolidation occurs when two companies combine to form a new company. In contrast, a merger occurs when two companies come together and one ceases to exist. An acquisition occurs when one company takes over another company.

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