Answer (D) is correct . A consolidation is a business transaction in which a new company is organized to take over the combining companies. An entirely new company is formed, and neither of the merging companies survives. Firm B merges with firm C to form an entirely new company called BC, and neither B nor C survives. Therefore, this is a consolidation.
Answer (A) is incorrect because A tender offer is used in an acquisition by a firm to the shareholders of another firm to tender their shares for a specified price.
Answer (B) is incorrect because In an acquisition of assets, both companies continue to operate separately.
Answer (C) is incorrect because In an acquisition of assets or stock, both companies continue to operate separately.
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