The document defines mergers and consolidations, with mergers absorbing one firm into another which retains its name and identity, and consolidations creating an entirely new firm. Mergers are legally straightforward but require shareholder approval. Types of mergers include stock acquisitions through tender offers contingent on obtaining a percentage of shares, and asset acquisitions requiring a shareholder vote but avoiding potential minority shareholders. The goal of mergers and acquisitions is to increase size and market value, with the latter being more difficult to achieve.