Multiple choice

One or more bank is merged with another bank or two or more banks decide to merge to form a new company. It is called

  1. merger

  2. amalgamation

  3. liquidation

  4. winding-up

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

Amalgamation is the combination of one or more companies into a new entity. An amalgamation is distinct from a merger because neither of the combining companies survives as a legal entity. A completely new entity is formed to house the combined assets and liabilities of both companies. Thus, option 2 is the correct answer.