Ehlinger Investments announced today that it has acquired all of the assets and liabilities of Thompson Equity. The combined firm will be known as Ehlinger Investments; Thompson Equity no longer exists as a separate entity. This acquisition is best described as a:

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29-04-2022
Business

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Ehlinger Investments announced today that it has acquired all of the assets and liabilities of Thompson Equity. The combined firm will be known as Ehlinger Investments; Thompson Equity no longer exists as a separate entity. This acquisition is best described as a:

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VidyaaTech2022 VidyaaTech2022 · Answer 1 · 2022-05-09T13:58:55+02:00

The acquisition of all liabilities and assets of Company T by Company E leads to the formation of Company E. This type of acquisition is known as a merger.

What is an acquisition?

The acquisition is a method of acquiring control by one company over another company either by purchasing 100% or some proportionate shares of that company.

A merger is one of the methods of acquisition where a new company is created by combining either two or greater than two entities. In this process, the company which acquires is known as purchasing company and the company whose business is being acquired is called a vending company.

In the provided case, Company E is the acquiring company and Company T is the vending company. The merger leads to the formation of Company E and the dissolving of Company T completely.

Therefore, the acquisition of Company T's business by Company E resulting in the formation of Company E is called a merger.

Learn more about the merger in the related link:

https://brainly.com/question/15719354

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