The ________ is the company in a merger transaction that tries to merge with or acquire another company.

Explanation: Fill in the blank with one of these possible answers: target company, takeover company, conglomerate company or hostile company

Question

The ________ is the company in a merger transaction that tries to merge with or acquire another company.

Explanation: Fill in the blank with one of these possible answers: target company, takeover company, conglomerate company or hostile company

BlackTom AI · Accepted Answer

The prompt asks to fill in the blank: 'The ________ is the company in a merger transaction that tries to merge with or acquire another company.'

Option 1: target company. This term typically refers to the company that is being acquired or sought after in a merger or takeover, not the company that initiates the transaction. So this choice describes the other party, not the acquirer.

Option 2: takeover company. This wording identifies the entity that attempts to take control through merging with or acquiring another firm. It aligns with common language used to denote the company that initiates the acquisition or merger process. This is the correct conceptual fit for the blank.

Option 3: conglomerate company. A conglomerate is a large corporation that owns a collection of different companies, often in diverse industries. It describes a corporate structure rather than the specific role of the company in a single merger transaction, so it does not fit the intended definition here.

Option 4: hostile company. 'Hostile' describes the nature of an attempted acquisition (as in a hostile takeover) rather than naming the participating entity. It is more of a descriptor of the environment or approach rather than the identity of the acquirer, making it an unsuitable label for the blank.

In summary, the term that correctly designates the company that initiates a merger or acquisition is the 'takeover company,' since it specifies the actor pursuing the deal, whereas the other options refer to the target, corporate structure, or the approach rather than the role in the transaction.

25741 Capital Markets - Autumn 2025 Quiz 3 - GRADED

The ________ is the company in a merger transaction that tries to merge with or acquire another company. Explanation: Fill in the blank with one of these possible answers: target company, takeover company, conglomerate company or hostile company

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