The target becomes a subsidiary of the acquirer but continues to maintain its business.a.Statutory Mergerb.Subsidiary Mergerc.Consolidationd.Vertical Merger

In the context of corporate mergers and acquisitions, the scenario described involves the acquirer taking control of the target company, which then operates as a subsidiary. Among the options provided, the most accurate choice is b. Subsidiary Merger.

Explanation:

1. Statutory Merger: In a statutory merger, one company absorbs another, and the acquired company ceases to exist as a separate legal entity. This does not align with the situation described.

2. Subsidiary Merger: This is where a target company becomes a subsidiary of the acquiring company. The target continues to operate its business independently, which matches the scenario in the question.

3. Consolidation: This involves both companies merging to form a completely new entity. In this case, neither of the original companies exists separately, which contradicts the description.

4. Vertical Merger: This refers to a merger between companies at different stages of production in the same industry. While this can involve subsidiaries, it does not specifically capture the scenario outlined.

Therefore, the correct answer is b. Subsidiary Merger.