CFA Practice Question

There are 86 practice questions for this study session.

CFA Practice Question

The purchase of a definable segment of another entity, such as a subsidiary, is called a (n):

A. Acquisition.
B. Statutory merger.
C. Subsidiary merger.
Correct Answer: A

User Contributed Comments 3

User Comment
ssradja why not subsidiary merger?
angy557 subsidiary merger is when company acquires another company with high brand identity so they keep the old company as a subsidiary of the new company so as to not integrate them
davidt87 to be a little more clear than angy, we dont know for sure if the company has integrated the entity or kept it as a subsidiary. therefore we know it is an acquisition (A), but we cannot say what kind of acquisition it is (B or C)
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