Vidyalelo
Management · Q13

Strategic Management

Graduate and Post Graduate · Management · question 13

Q13

Buying another company by one company means:

A.
Joint venture
B.
Acquisition
Answer
C.
Amalgamation
D.
Merger

Answer: Option B

Solution

Answer: Option B
Solution:
Buying another company by one company means acquisition. An acquisition is when one company purchases most or all of another company's shares to gain control of that company. Purchasing more than 50% of a target firm's stock and other assets allows the acquirer to make decisions about the newly acquired assets without the approval of the company's shareholders.