An acquisition is a transaction in which a firm buys another firm with the intention of creating value by buying and selling the acquired firm's assets in the external markets.

Question

Quizplus · Accepted Answer

An acquisition is a transaction in which a firm buys another firm with the intention of integrating it into its operations and creating value through synergies, cost reductions, or gaining access to new markets or technologies, rather than primarily buying and selling the acquired firm's assets in the external markets.

An Acquisition Is a Transaction in Which a Firm Buys