Multiple choice

Two existing companies are combined to create a new company with both of them losing their identity. It is called a/an

  1. alliance

  2. amalgamation

  3. consolidation

  4. merger

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Consolidation is the joining of several business units or several different companies into a larger organisation. Business consolidation is used to improve operational efficiency by reducing redundant personnel and processes. It is most often associated with mergers and acquisitions. Business consolidation can result in long-term cost savings. In the short-term, it can be expensive and complex.