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Solution
.
Providing legal advice to the president of the company concerning a possible merger would be
considered a organization sustaining activity.
A merger or acquisition is a combination of two companies where one corporation is completely
absorbed by another corporation. The less important company loses its identity and becomes part
of the more important corporation, which retains its identity. A merger extinguishes the merged
corporation, and the surviving corporation assumes all the rights, privileges, and liabilities of the
merged corporation. A merger is not the same as a consolidation, in which two corporations lose
their separate identities and unite to form a completely new corporation.

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  • 1. Solution . Providing legal advice to the president of the company concerning a possible merger would be considered a organization sustaining activity. A merger or acquisition is a combination of two companies where one corporation is completely absorbed by another corporation. The less important company loses its identity and becomes part of the more important corporation, which retains its identity. A merger extinguishes the merged corporation, and the surviving corporation assumes all the rights, privileges, and liabilities of the merged corporation. A merger is not the same as a consolidation, in which two corporations lose their separate identities and unite to form a completely new corporation.